Its related to Islamic banking

1. Islamic Finance
 Group Members
 Nadeem Abbas 09
 Muhammad Irfan Shahid 12
 Muhammad Tanveer 15
 Hafiz Muhammad Mustghas 22
Topic: Al-Baraka Islamic Bank (AIB)
University Of Education Okara Campus

2. 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 12 countries, which in turn provide
their services through more than 250 branches. These banking Units are Jordan Islamic
Bank/ Jordan,

3. 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 20 branches in 11 major
cities of the country,
 AIB offers a wide array of Islamic financing products such as
Murabaha, Ijara, Musharaka and Islamic Export Refinance,

4. 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.

5. 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 496
employees working at different branches of Al – Baraka Islamic
at Pakistan.
 With assets in excess of Rs. 70 billion; a workforce of 1400
professionals and a network of 89 branches in 37 cities and towns
across Pakistan.

6. 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.

7. Objectives of AIB
 To enhance shareholder value whilst pursuing a strategy of
business growth and geographical expansion.
 To provide innovative and high quality research and development
into Islamic financial products which comply fully with the
principles of Shariah Law and Islamic values, for the benefit of
our customers.
 To utilize the Group’s geographical presence to distribute its
products and services and promote cross border services.
 To maintain the highest international standards of corporate
governance and regulatory compliance.

8. Islamic modes followed by AIB
 Mudarba
 Musharka
 Murabaha
 Murabaha LC
 Takaful
 Ijarah
 Istisna'a

9. Murabaha
 Murabaha is an Islamic form of asset financing and has
a fixed term and a predetermined profit. In a Murabaha
the bank buys a specific asset that the customer wants,
and after having owned it and becomes its property, it
sells to the customer at the buying price plus a profit at a
rate agreed at the time of entering into the contract.
Murabaha helps enterprises and commercial customers
by serving their project and business needs.

10. Murabaha LC
 The customer submits an application to the bank to open a letter of credit
for the purchase or import of goods, indicating that it wants to buy the
goods from the bank upon arrival on a Murabaha basis.
 The bank will open a letter of credit accordingly, and the price will be paid
by the bank in its capacity as the buyer of the goods.
 Upon the arrival of the goods, the bank sells them to the customer on a
Murabaha basis at an agreed price which includes the cost of goods, a
profit and service fees

11. Istisna'a
 Istisna is an Islamic form of financing used to finance
construction and industrial projects, such as the
construction of buildings and so on. The unique feature
of Istisna'a is that it allows the selling of an asset which
does not exist at time of the contract. The payment can
be in immediate cash or may be in the form of deferred
payments.

12. Products of AIB
 Al Baraka Basic Banking (Current account)
 Khazana Account (saving account)
 Sarparast Family Takaful
 ABPL Auto Ijarah
 Al Baraka Mahana Barkah
 Al Baraka Mahana Amadani
 Tifl-Young Savers Accoun
 Housing Musharakah

13. Al Baraka Basic Banking
Salient features
 A Pak Rupee current account with no minimum
balance requirements
 No profit / return will be paid to the depositor
on the balance maintained in the account
 Can be opened with as low as Rs. 100/=
 No minimum balance requirement and no
penalty for low balances
 Unlimited and free access to cash withdrawals
through ABPL’s ATM network.
 Transactions on non-ABPL ATMs will be
charged as per the Schedule of Charges
 Statement of account will be issued once a year
 Other services will be provided as per
prevailing Schedule of Charges
 Additional benefits such as e-Statement, 24/7
Phone Banking, SMS Banking
Islamic concept
 The ABPL Basic Banking Account is
based on the Islamic principle of Qarz,
whereby the customer is the lender and
the bank is the borrower. Customer
funds are invested with utmost care in
halal business ventures only, and are
payable, on demand, with neither any
addition and/or penalty.

14. Khazana Account
 Minimum initial investment of Rs.
100,000/-
 Available only in Pak Rupees
 Tiered profit structured
 Unlimited deposits and withdrawals
 Profit is paid on monthly basis and
calculated on a daily product basis
 Enjoy higher profits on higher balances
 Additional benefits such as e-Statement,
24/7 Phone Banking, SMS Banking,
ATM/Debit Card
 Al Baraka Khazana account is based on
the Islamic concept of Mudarabah.
Under this arrangement the customer is
Rab-ul-Maal (Investor) and the bank is
Mudarib (Fund Manager). Customer
deposit is invested in profitable
business ventures which are legal and
Shariah compliant. The profit/loss is
shared on a pre determined ratios. As
Fund Manager, the bank is entitled to a
part of the profit, whereas profit
distribution amongst the depositors and
shareholders is made according to the
weightages assigned to their investment
at the beginning of each month.
Salient features Islamic concept

15. Sarparast Family Takaful
 Saving for long-term needs in the future.
 Regular contributions invested in a
diversified portfolio of Islamic funds
ranging from Sukuk to Mutual Funds,
based on the customer’s risk appetite.
 Flexible plans in terms of frequency of
payment.
 Takaful cover allows family to receive
funds, in case of death of the participant.
 Al Baraka’s Sarparast, safeguards your
future, while giving you the financial
freedom you deserve. It helps you plan
necessary events of your life from
marriage to education, retirement to
vacations or pure savings in accordance
with the Islamic principles.
 Al Baraka Bank (Pakistan) Ltd. in
association with Pak-Qatar Family
Takaful Limited is offering an
exclusive product “Sarparast – Family
Takaful Plan”. Sarparast is a Shariah
Compliant savings and investments
plan exclusively designed to cater to
your Takaful needs.
Salient features Islamic concept

16. ABPLAuto Ijarah
 Shariah compliant.
 Quick processing.
 Most affordable rentals.
 No upfront Takaful (Islamic
Insurance) charges.
 No upfront registration charges.
 No upfront rentals before delivery
of the vehicle.
 Payable in tenure of 24 to 60
months.
 Minimum processing charges.
 It is our commitment to put our
customers’ values foremost and
providing them with the banking
solutions that are in line with Shariah
Principles.
 Al Baraka products and services are
approved by the bank’s Shariah
Advisor Justice (R) Khalil-ur-Rahman
Khan, who has served as Chairman on
the Shariat Appellate Bench of the
Supreme Court of Pakistan and has
been the Rector of the International
Islamic University, Islamabad. He is
also currently serving as a member of
the Shariah Board of the State Bank of
Pakistan.
Salient features Islamic concept

17. Al Baraka Mahana Barkah
 To qualify for Al Baraka Mahana Barkah
Account profit rate minimum balance of
PKR 10,000 and maximum of PKR 5.0
million is required to be maintained during
that month otherwise normal savings
account rate will be applicable.
 Profit calculation on daily balance and
credited in the account on monthly basis.
 Free first Al Baraka Union Pay Debit Card.
 Free e- statement.
 Free Phone banking services through which
you can get pay orders, cheque books, stop
payments, ATM card replacement, duplicate
bank statements at an exceptional discount.
 All other charges as per bank’s Schedule of
Charges.
 Al Baraka Mahana Barkah Account is offered on
the basis of Mudarabah principles of Islamic
Banking. Mudarabah is a special kind of
partnership where one partner gives money to
another for investing in Shariah compliant
avenues. The investment comes from the first
partner who is called Rabb-ul-mal (Customer),
while the management and work is an exclusive
responsibility of the other, who is called Mudarib
(Bank).
 The Bank will announce weightages and profits
sharing ratios 3 days before the beginning of the
month. The Bank will share the profit at the gross
income level and will subsequently credit the
proportionate profit in the customer’s account at
the end of the month. In case of loss, the customer
will bear the loss as per the ratio of his investment.
 Latest profit sharing ratios and weightages are
available on our website or can be obtained from
any branch of Al Baraka Bank.
Salient features Islamic concept

18. Al Baraka Mahana Amadani
 Minimum investment/ saving Rs.
50,000
 Profit Calculation: Monthly
 Profit payment options: Monthly
 Available in Pak Rupee
 Tenure: 1 Year to 5 Years
 Free ATM/ Debit card with
unlimited access through ATMs
nationwide.
 Additional benefits such as e-
Statement, 24/7 Phone Banking,
SMS Banking
 Al Baraka Mahana Amadani is based
on the Islamic concept of Mudarabah.
Under this arrangement the customer is
Rab-ul-Maal (Investor) and the bank is
Mudarib (Fund Manager). Customer
deposit is invested in profitable
business ventures which are legal and
Shariah compliant. The profit/loss is
shared on a pre determined ratios. As
Fund Manager, the bank is entitled to a
part of the profit, whereas profit
distribution amongst the depositors and
shareholders is made according to the
weightages assigned to their investment
at the beginning of each month.
Salient features Islamic concept

19. Tifl-Young Savers Accoun
 Specially designed for children and youngsters to
enjoy the benefits of Islamic Banking.
 Tifl-Young Savers Account can be opened for any
child and teenager aged between one day and 18
years.
 Based on Islamic principles of Mudarabah and
under the supervision of proficient Shariah
Committee.
 Available in Local Currency.
 Profit calculation on daily balance basis in your
account.
 Profit accredited to your account on quarterly
basis.
 No limit for minimum or maximum balance.
 Unlimited deposits and maximum of 2 withdrawals
(over the counter) are allowed within a calendar
month.
 Free Al Baraka Union Pay Debit Card.
 Al Baraka Tifl- Young Savers Account is offered
on the basis of Mudarabah principles of Islamic
Banking. Mudarabah is a special kind of
partnership where one partner gives money to
another for investing in Shariah compliant
avenues. The investment comes from the first
partner who is called Rabb-ul-mal (Customer),
while the management and work is an exclusive
responsibility of the other, who is called Mudarib
(Bank).
 The Bank will announce weightages and profits
sharing ratios 3 days before the beginning of the
month. The Bank will share the profit at the gross
income level and will subsequently credit the
proportionate profit in the customer’s account at
the end of the month. In case of loss, the customer
will bear the loss as per the ratio of his investment.
 Latest profit sharing ratios and weightages are
available on our website or can be obtained from
any branch of Al Baraka Bank.
Salient features Islamic concept

20. Housing Musharakah
 AlB also provides the facilities of Housing Musharakah to his
customer. AlB contribution is 80% of total investment, and client
can contribute 20% of the investment. The employee can pay
rental and installments to bank in order to get total share of the
property or land which they jointly buy. The period is from 1 to
15 year.

21. Car Ijarah
 AlB provide the facilities of car Ijarah/leasing to his
customer. AlB provided fund up to 4 million to his
customer for the period of 2 to 5 year. No interest
concept is involved, therefore profit margin is not
announced before transaction .finance on the concept of
asset based financing. Therefore no chance of default
for bank.