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Handbook-IBD

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  1. Handbook of Islamic Banking Products & Services Products & Services Handbook of Islamic Banking Islamic Banking Department State Bank of Pakistan State Bank of Pakistan

  2. The Team The Team Name Name Designation Designation Contact Contact Mr. Pervez Said Director Pervez.Said@sbp.org.pk Mr. Imran Ahmad Senior Joint Director Imran.Ahmad@sbp.org.pk Ms. Fatima Javaid Regulating Officer Fatima.Javaid@sbp.org.pk

  3. " "We must work our destiny in our own way and present to the world an economic system based on trueIslamic concept of equality of manhood and social justice." equality of manhood and social justice." We must work our destiny in our own way and present to the world an economic system based on trueIslamic concept of Quaid-e-Azam Mohammad Ali Jinnah Founder of Islamic Republic of Pakistan Founder of Islamic Republic of Pakistan Quaid-e-Azam Mohammad Ali Jinnah On the Occasion of the Opening Ceremony of The State Bank of Pakistan on July 1, 1948 On the Occasion of the Opening Ceremony of The State Bank of Pakistan on July 1, 1948

  4. TABLE OF CONTENTS TABLE OF CONTENTS S. No S. No Contents Contents Page Page 1 Introduction of Islamic Banking 1 2 Islamic Banking Branch Network as on Dec 31, 2008 3 3 Islamic Banking Products & Services 4 Products Offered by Full-fledge Islamic Banks 7-60 Products offered by Islamic Banking Branches of Conventional Banks 61-129 4 Important terms on Islamic Banking 130 Disclaimer: The document is prepared for general information only. The information provided in this document is subject to change by the Islamic Banking Institutions (IBIs) and may not exactly match the IBI’s prevailing policies and practices. Further, this document should not be used as a substitute for proper and up to date legal advice.

  5. INTRODUCTION OF ISLAMIC BANKING Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interest-based transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economy. Islam was the basis of creation of an independent state within the undivided Indo-Pak Sub-Continent. Since its creation, the people of Pakistan have held the demand for elimination of Riba from the financial system of Pakistan on the basis of Islamic precepts. All Constitutions of Pakistan have incorporated, within the principles of policy, the elimination of Riba as an important objective of the State policy. Quaid-e- Azam, the father of the nation, in his speech at the occasion of the inauguration of State Bank of Pakistan, had expressed the desire for evolving an Islamic system of banking. Article 38(f) of the Constitution of the Islamic Republic of Pakistan provides: “The State shall …. Eliminate riba as early as possible.” The Objectives Resolution, 1947, now a part of the Constitution, as well as principles of policy enunciated in the Constitution also require to establish an order in Pakistan “[w]herein the Muslims shall be enabled to order their lives in the individual and collective spheres in accordance with the teachings and requirements of Islam as set out in the Holy Quran and Sunnah”. The efforts undertaken in the 1980’s to Islamize the economy at comprehensive / national level are considered as pioneering work in the Muslim world as this became important reference material for other countries which undertook the path towards introduction and establishment of an Islamic banking system. Since Pakistan started with an approach to convert the whole system into Islamic one, a number of amendments in relevant laws were introduced providing legal cover for Islamic financial products and services. Similarly, some new laws were introduced to allow new financial institutions or facilitate the existing ones. The legal and regulatory infrastructure developed during that era has proved to be invaluable asset as we keep on charting the present landscape of the industry today on the same. 1 Islamic Banking Department Islamic Banking Department

  6. Islamic Banking Industry of Pakistan continued its progress during the year 2008. They have increased their share of assets in the overall banking system to 4.9% up to December 2008. The growth is also reflected in increased share of deposits and financing & investment that stood at 4.8% and 4.4% respectively at the end of Dec 2008. Description Description Dec-03 Dec-03 Dec-04 Dec-04 Dec-05 Dec-05 Dec-06 Dec-06 Dec-07 Dec-07 Dec-08 Dec-08 Total Assets 13 44 72 118 276 276 %age of Banking Industry 0.5% 1.4% 2.1% 2.9% 4.2% 4.9% Deposits 8 30 50 83 202 202 %age of Banking Industry 0.4% 1.2% 1.9% 2.8% 4.1% 4.8% Financing. & Invest. 10 30 48 72 186 187 %age of Banking Industry Conventional Banks with Islamic Banking Branches No. of Branches (Including Sub Branches) 0.5% 1.3% 1.8% 2.4% 3.6% 4.4% 3 7 9 12 12 12 17 48 70 150 289 514 Currently, there are 6 full-fledge banks and 12 conventional Banks are offering Islamic Banking products through their Islamic Banking Branches. Hence, branch network of IBIscomprises of around 514 branches as on Dec 31, 2008. 2 Islamic Banking Department Islamic Banking Department

  7. Islamic Banking Branch Network as on Dec 31, 2008 Islamic Banking Branch Network as on Dec 31, 2008 Type Type Bank Name Bank Name No. of Branches No. of Branches Islamic Bank Islamic Bank 30 Albaraka Islamic Bank B.S.C. (E.C.) BankIslami Pakistan Limited 70 15 Dawood Islamic Bank Limited 23 Dubai Islamic Bank Pakistan Limited Emirates Global Islamic Bank Limited Meezan Bank Limited 40 131 309 Sub-total Sub-total Islamic Banking Branches Islamic Banking Branches 18 Askari Bank Limited 4 48 1 Bank AL Habib Limited Bank Alfalah Limited Habib Bank Limited 4 11 5 6 8 Habib Metropolitan Bank Limited MCB Bank Limited National Bank of Pakistan Soneri Bank Limited Standard Chartered Bank(Pakistan) 16 3 5 129 The Bank of Khyber The Royal Bank of Scotland United Bank Limited Sub-Total Sub-Total Sub Branches Sub Branches 2 32 6 2 Askari Bank Limited BankIslami Pakistan Limited Dawood Islamic Bank Limited Dubai Islamic Bank Pakistan Limited 35 77 Meezan Bank Limited Sub Branches Total Sub Branches Total Grand Total Grand Total 515 3 Islamic Banking Department Islamic Banking Department

  8. ISLAMIC BANKING ISLAMIC BANKING PRODUCTS & SERVICES PRODUCTS & SERVICES Islamic Banking Institutions of Pakistan are offering a wide range of Murabaha is dominating the financing portfolio of Islamic Banking Institutions of Pakistan are offering a wide range of Compliant products & services. IBIs. Similarly, Ijara, Musharaka and Diminishing Musharaka are also used noticeable share in total financing of IBIs. However, Mudaraba, Salam and Istisna portfolios still needs to be triggered. May be, in the coming years, by introduction the Shariah compliant Agricultural products, their share get increased. Presently, these financing have relatively small share as compared to Murabaha and Diminishing Musharaka. A comprehensive range of Islamic Banking products and services is being offered, in order to meet customer's demand of Shariah Compliant Banking, in the following areas: Islamic Banking Institutions of Pakistan are offering a wide range of Compliant products & services. Murabaha is dominating the financing portfolio of IBIs. Similarly, Ijara, Musharaka and Diminishing Musharaka are also used IBIs. Similarly, Ijara, Musharaka and Diminishing Musharaka are also used depicting a Shariah Mode of Finance - December 2008 financing of IBIs. However, Others Others 5% Istisna 3% Qarz/Qarz-e- Hasna 0% Murabaha 37% Salam 2% Diminishing Musharaka 29% Mudaraba 0% Ijarah 22% Musharaka 2% offered, in order to meet customer's demand of Shariah Compliant Banking, in the offered, in order to meet customer's demand of Shariah Compliant Banking, in the Corporate /SME Banking Investment Banking Trade Finance General Banking Consumer Banking Banking      Investment Banking Islamic Banking products have to be approved by the Bank's Shariah Advisor instructed vide IBD Circular 2 of 2008. As per Shariah requirements, funds and products of Islamic Banking are managed separately from the Conventional Banking side. All funds obtained, invested and shared in Halal modes & investments, under side. All funds obtained, invested and shared in Halal modes & investments, under Islamic Banking products have instructed vide IBD Circular 2 of 2008. products of Islamic Banking are managed separately from the Conventional Banking side. All funds obtained, invested and shared in Halal modes & investments, under supervision of the Shariah Advisor. supervision of the Shariah Advisor. approved by the Bank's Shariah Advisor as As per Shariah requirements, funds and products of Islamic Banking are managed separately from the Conventional Banking In order to ensure compliance with minimum Shariah standards by the banks conducting Islamic banking in Pakistan, the Commission for Transformation of Financial System set up in the SBP approved essentials of Islamic modes of financing. Financial System set up in the SBP approved essentials of Islamic modes of financing. Financial System set up in the SBP approved essentials of Islamic modes of financing. sure compliance with minimum Shariah standards by the banks conducting Islamic banking in Pakistan, the Commission for Transformation of conducting Islamic banking in Pakistan, the Commission for Transformation of sure compliance with minimum Shariah standards by the banks 4 Islamic Banking Department Islamic Banking Department

  9. These are model agreements which have been approved in line with Supreme Court Judgement on Riba. These include Musharaka, Mudaraba, Murabaha, Musawama, Leasing, Salam and Istisna. These model agreements are expected to facilitate the existing Islamic banking sector in creating awareness about Islamic banking products and to develop such products. These model agreements, however, can be modified, in conformity to the products designed by the banks conducting Islamic banking business. But to bring any kind of change in these model agreements, banks conducting Islamic banking operations, will seek approval of the Shariah Board of Islamic Commercial Banks or Shariah Adviser of banks having Islamic banking branches, ensuring that such changes are consistent with the principles of Shariah. The1industry over the years has managed to offer a wide array of products encompassing almost the entire range of Islamic modes of financing that are able to cater to the needs of majority of thesectors of the economy. Asset Side Asset Side The segments covered by the industry through various Shariah compliant modes such as Murabaha, Mudaraba, Musharaka, Ijarah, Diminishing Musharaka, Salam, Istisna, Wakala and Islamic Export Refinance etc. include • Corporate / Commercial, • Agriculture, • Consumer, • Commodity Financing, • SME sector, • Treasury & Financial Institutions. Also with the increased issuance of Sukuk by corporates investments of IBIs in these Shariah compliant instruments is on the rise. Liability Side Liability Side On the Liability side, Islamic Banking Industry offers various Shariah compliant deposit schemes that are available for customers to invest their funds. These include • Current Accounts, • Basic Banking Account, • Savings Accounts, • Term Deposits of various maturities, and • Certificates of Investment etc. 1iBSR 5 Islamic Banking Department Islamic Banking Department

  10. Current Account is mostly being offered on Qard basis whereas Mudaraba is the preferred mode used by Islamic banks for offering savings accounts, term deposits & certificates of investment. Others Others Some full fledged banks are also offering investment banking products and services including Sukuk Arrangement, Financial Advisory, Private Placement, Syndication, Trusteeship, Underwriting, Structured Finance, Listing on Capital Markets, Project Financing, Mergers & Acquisitions etc. Further, a variety of other ancillary services are also being offered in a Shariah compliant manner such as • Bonds & Guarantees, • Letters of Credit • Remittances ( local & International), • Online banking, • ATM/debit card ( including Visa), • Safe deposit lockers and • Utility bill payments etc. • Collection of export bills, assignment of export / local bills • Inter-Bank funds transfer facility through ATM, • E-Statement facility, • Lockers, • Phone Banking and 24 /7 Call Centre service. • Deposit accepting ATMs Following Chapter will focus on bankwise various product offering2by IBIs of Pakistan. 2Data maintained as per IBD Circular No.02 of 2008. 6 Islamic Banking Department Islamic Banking Department

  11. ProductsOffered ProductsOffered By By Full Fledge Full Fledge Islamic Banks Islamic Banks

  12. 1. 1. MEEZAN BANK LIMITED MEEZAN BANK LIMITED Asset Side Products Asset Side Products Car Ijara Car Ijara Ijara Consumer Fixed rate for different tenures Used Rs. 250 K Used Rs. 1.5 million, Semi Commercial upto 1 million, New upto Rs 2 million, Imported upto 4 million, 3 Years 5 Years Salaried Individuals, Self-employed Professionals, Business Individuals Exclusive ownership of the asset, post dated cheques Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Easy Home Easy Home Underlying Islamic Mode Underlying Islamic Mode Diminishing Musharaka Type of Product Type of Product Easy Buyer, Easy Builder, Easy Renovate, Easy Replace KIBOR(90 days average of 12-month KIBOR) In case of Buyer, Builder, Replacement Rs.300,000 In case of Renovation Rs.150,000 In case of Buyer, Builder, Replacement Rs.40 million, In case of Renovation Rs.1 million In case of Buyer, Builder, Replacement 3 Years In case of Renovation 2 Years In case of Buyer, Builder, Replacement 20 Years In case of Renovation 7 Years Salaried Individuals, Self-employed Professionals, Business Individuals Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 7 Islamic Banking Department Islamic Banking Department

  13. Security/Collateral Required Security/Collateral Required owner occupied residential property, Land for home building. Short Term Financing Short Term Financing Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing Murabaha Corporate/SME KIBOR Liquidity Position No As per SBP Prudential Regulations(PRs) 7 days 1 Year Corporate Cash /MOTD /Letter of Hypothecation/Pledge Based/Risk Rating/Bank's Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Islamic Export Refinance Scheme (IERS) Islamic Export Refinance Scheme (IERS) Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Murabaha Corporate/SME SBP Rate No As per SBP PRs 30 days 180 days Corporate Cash/MOTD/Letter of Hypothecation/Pledge Long Term Financing Long Term Financing Ijara/Diminishing Musharaka Corporate/SME KIBOR Based/Risk Rating/Bank's Liquidity Position No As per SBP PRs Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit 8 Islamic Banking Department Islamic Banking Department

  14. Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required 1 Year 5 Years Corporate Cash/MOTD/Letter of Hypothecation/Pledge Bill Purchase (Usance) Bill Purchase (Usance) Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Murabaha Corporate/SME Prevailing Market Rate No As per SBP PRs 15Days 180 Days Bill Purchase (Sight) Bill Purchase (Sight) Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Salam Corporate/SME Prevailing Market Rate No As per SBP PRs 2 Days 30 Days Corporate Target Customers Target Customers Security/Collateral Required Security/Collateral Required Corporate Cash/MOTD/Letter of Hypothecation/Pledge Meezan Tijarah Meezan Tijarah Agency & Sale Financing for Corporate/SME/Commercial Market driven and customer's credit profile Underlying Islamic Mode Underlying Islamic Mode Type of Product Type of Product Basis for Pricing Basis for Pricing 9 Islamic Banking Department Islamic Banking Department

  15. Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required N/A As per customer profile N/A upto 1 year Corporate/SME/Commercial Hypo charge over fixed assets/property etc. 10 Islamic Banking Department Islamic Banking Department

  16. Liability Side Products Liability Side Products Current Account Current Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable(if any) Service charges Leviable(if any) 2. Qard PKR Current(Checking) Minimum Balance Requirement (if NA Checking Checking No NA businessmen, individuals No Saving Account Saving Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Checking Minimum Balance Requirement (if NA Checking Checking Monthly Monthly salaried persons, housewives and other individual customers No Service charges Leviable (if any) Service charges Leviable (if any) 11 Islamic Banking Department Islamic Banking Department

  17. Karobari Munafa Account Karobari Munafa Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Saving Minimum Balance Requirement (if Rs. 1 million Checking Checking Monthly Monthly High net worth individuals, business concerns No Service charges Leviable (if any) Service charges Leviable (if any) FCY Current Account FCY Current Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Qard USD, GBP, Euro checking Minimum Balance Requirement (if USD 100 NA NA NA NA All customers willing to open FCY current account No Service charges Leviable (if any) Service charges Leviable (if any) FCY Savings Account FCY Savings Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Mudaraba USD, GBP, Euro Checking Minimum Balance Requirement (if USD 100 NA 12 Islamic Banking Department Islamic Banking Department

  18. Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers NA monthly monthly Customerswho prefer FCY checking Account No Service charges Leviable (if any) Service charges Leviable (if any) DollarsMudaraba Certificate (FCY Term) DollarsMudaraba Certificate (FCY Term) Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba USD, GBP, Euro Term Deposit Minimum Balance Requirement (if USD 10000 3 months 3 years Monthly Half yearly, maturity customers who prefer long term investment in USD with better returns No Service charges Leviable (if any) Service charges Leviable (if any) Certificate of Islamic Investment Certificate of Islamic Investment Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Term Deposit Rs. 50,000 Minimum Balance Requirement (if 3 Months 5Years Monthly Monthly, Quarterly, Maturity Customers who wish to invest from short term to long term No Service charges Leviable (if any) Service charges Leviable (if any) 13 Islamic Banking Department Islamic Banking Department

  19. Meezan Amdan Certificate Meezan Amdan Certificate Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Term Deposit Rs. 100,000 Minimum Balance Requirement (if 5 years 7 Years Monthly Monthly Customers who wish to invest for long term. No Service charges Leviable (if any) Service charges Leviable (if any) Meezan Providence Certificate Meezan Providence Certificate Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Mudaraba PKR Term Deposit Rs. 1,000,000 Minimum Balance Requirement (if 2 Years 7Years 6 monthly, maturity 6 monthly, Maturity Corporate /Pension funds No Monthly Mudarabah Certificate Monthly Mudarabah Certificate Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Mudaraba PKR Term Deposit Rs. 1,000,000 Minimum Balance Requirement (if 1 Month 1 Month 14 Islamic Banking Department Islamic Banking Department

  20. Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Monthly Monthly Customers who have excess liquidity to invest for 1 month No Service charges Leviable (if any) Service charges Leviable (if any) Special Musharaka Certificate Special Musharaka Certificate Underlying Islamic Mode Underlying Islamic Mode AcceptableCurrency AcceptableCurrency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Musharaka PKR Term Deposit Rs. 50,000,000 Minimum Balance Requirement (if No preset Tenor as per maturity Maturity Maturity Corporate /Financial Institutions. No Meezan Business Plus Meezan Business Plus Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Mudaraba PKR Current Account Rs. 100,000 Minimum Balance Requirement (if N/A N/A Average Balance Monthly Business Individuals & Corporate As per schedule of charges 15 Islamic Banking Department Islamic Banking Department

  21. 2. 2. A ALBARAKA ISLAMIC BANK LBARAKA ISLAMIC BANK Asset Side Products Asset Side Products Ijara Financing (Commercial Vehicles) Ijara Financing (Commercial Vehicles) Underlying Islamic Mode Underlying Islamic Mode Ijara Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate, SME KIBOR based fixed and variable rates As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors 3Years 5 Years All customers falling under corporate, SME sector Title of the leased asset on bank's name, Security deposit and or any other security as per PRs Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Ijara Financing (office equipment) Ijara Financing (office equipment) Underlying Islamic Mode Underlying Islamic Mode Ijara Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate, SME KIBOR basedfixed and variable rates As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 3Years Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 5 Years All customers falling under corporate, SME sector Title of the leased asset on bank's name, Security deposit and or any other Security/Collateral Required Security/Collateral Required 16 Islamic Banking Department Islamic Banking Department

  22. security as per PRs Ijara Financing (Ijarah for Vehicle-Domestic) Ijara Financing (Ijarah for Vehicle-Domestic) Underlying Islamic Mode Underlying Islamic Mode Ijara Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate, SME KIBOR based fixed and variable rates As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 3Years Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 5 Years All customers falling under corporate, SME sector Title of the leased asset on bank's name, Security deposit and or any other security as per PRs Security/Collateral Required Security/Collateral Required Ijara Financing (Ijarah for Plant & Machinery) Ijara Financing (Ijarah for Plant & Machinery) Underlying Islamic Mode Underlying Islamic Mode Ijara Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate, SME KIBOR based fixed and variable rates As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 3Years Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 5 Years All customers falling under corporate, SME sector Title of the leased asset on bank's name, Security deposit and or any other security as per PRs Security/Collateral Required Security/Collateral Required 17 Islamic Banking Department Islamic Banking Department

  23. Ijarah Financing (Office Equipment-Consumer) Ijarah Financing (Office Equipment-Consumer) Underlying Islamic Mode Underlying Islamic Mode Ijarah Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Consumer KIBOR based fixed and variable rates As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 3Years Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 5 Years Customer falling under salaried, self- employed and businessmen categories for consumer financing. Title of the leased asset on bank's name, Security deposit and or any other security as per PRs Security/Collateral Required Security/Collateral Required Ijarah Financing (Ijarah for vehicle-domestic) Ijarah Financing (Ijarah for vehicle-domestic) Underlying Islamic Mode Underlying Islamic Mode Ijarah Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate, SME KIBOR based fixed and variable rates As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 3Years Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 5 Years All customers falling under corporate, SME sector Title of the leased asset on bank's name, Security deposit and or any other Security/Collateral Required Security/Collateral Required 18 Islamic Banking Department Islamic Banking Department

  24. security as per PRs Murabaha Finance Murabaha Finance Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME, KIBOR based fixed rates for each transaction. As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 90 days Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 1 Year All customers falling under corporate, SME sector Cash, Collateral, Pledge, Mortgage or hypothecation of asset or as per PRs or bank's requirement. Security/Collateral Required Security/Collateral Required Export Murabaha & Murabaha Finance FE-25 Export Murabaha & Murabaha Finance FE-25 Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME Current interbank foreign currency rate for export Murabaha: LIBOR based current rates for Murabaha Finance As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 90 days Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors 180Year 19 Islamic Banking Department Islamic Banking Department

  25. Target Customers Target Customers All customers falling under corporate, SME sector Cash, Collateral, Pledge, Mortgage or hypothecation of asset or as per PRs or bank's requirement. Security/Collateral Required Security/Collateral Required Import Murabaha & Murabaha Finance FE 25 Import Import Murabaha & Murabaha Finance FE 25 Import Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME Current interbank foreign currency rate for export Murabaha: LIBOR based current rates for Murabaha Finance As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit 90 days Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 180 Year All customers falling under corporate, SME sector Cash, Collateral, Pledge, Mortgage or hypothecation of asset or as per PRs or bank's requirement. Security/Collateral Required Security/Collateral Required Islamic Export Refinance Scheme Islamic Export Refinance Scheme Underlying Islamic Mode Underlying Islamic Mode Murabaha, Istisna, Musawama, Musharaka Corporate, SME As per SBP refinance rate As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit As per PRs. Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors 20 Islamic Banking Department Islamic Banking Department

  26. Maximum Tenors Maximum Tenors Target Customers Target Customers 180 Year All customers falling under corporate, SME sector Cash, Collateral, Pledge, Mortgage or hypothecation of asset or as per PRs or bank's requirement. Security/Collateral Required Security/Collateral Required Housing Musharaka-Consumer Housing Musharaka-Consumer Underlying Islamic Mode Underlying Islamic Mode Diminishing Musharaka Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Consumer KIBOR Rs.300,000 Maximum Financing Limit Maximum Financing Limit Rs.20 million Minimum Tenors Minimum Tenors 3 Years Maximum Tenors Maximum Tenors Target Customers Target Customers 20 Years Customers falling under salaried, self employed and businessmen categories properties are mortgaged in bank's favor, personal Guarantee or any other collateral. Security/Collateral Required Security/Collateral Required Commercial Construction and Purchase Commercial Construction and Purchase Underlying Islamic Mode Underlying Islamic Mode Diminishing Musharaka Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate, SME KIBOR As per PRs and subject to bank's internal assessment for allocation of limit As per PRs and subject to bank's internal assessment for allocation of limit No Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors 5 Years 21 Islamic Banking Department Islamic Banking Department

  27. Target Customers Target Customers All customer falling under Corporate /SME sector. Properties are mortgaged in bank's favor, personal Guarantee or any other collateral. Security/Collateral Required Security/Collateral Required Personal Murabaha-Consumer Personal Murabaha-Consumer Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Consumer Market based fixed rate Rs.25,000 Maximum Financing Limit Maximum Financing Limit Rs.500,00 Minimum Tenors Minimum Tenors 6Months Maximum Tenors Maximum Tenors Target Customers Target Customers 2 Years Customers falling under salaried, self employed and businessmen categories for consumer financing. Murabaha shall be secured by way of hypothecation of items to the bank Security/Collateral Required Security/Collateral Required Export Musharaka Export Musharaka Underlying Islamic Mode Underlying Islamic Mode Musharaka Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Corporate KIBOR plus spread (pre-agreed ratio) As per PRs and bank's internal assessment As per PRs and bank's internal assessment As per PRs and bank's internal assessment Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors 22 Islamic Banking Department Islamic Banking Department

  28. Maximum Tenors Maximum Tenors Target Customers Target Customers 180 days Corporate, SME Security/Collateral Required Security/Collateral Required Pledge, Mortgage or Hypothecation of assets 23 Islamic Banking Department Islamic Banking Department

  29. Liability Side Product Liability Side Product PLS Saving Account-Local PLS Saving Account-Local Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Term NA Minimum Balance Requirement (if 7 days 5 years Daily Product Basis Half Yearly Individuals, companies, businesses No Organizations, Firms, Service charges Leviable (if any) Service charges Leviable (if any) PLS Saving Account-Foreign PLS Saving Account-Foreign Mudaraba Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Euro, USD, GBP, Yen. Term NA Minimum Balance Requirement (if 7 days 2years. Daily Product Basis Half Yearly Individuals, companies, businesses No Organizations, Firms, Servicecharges Leviable (if any) Servicecharges Leviable (if any) 24 Islamic Banking Department Islamic Banking Department

  30. PLS Saving Account-Local & Foreign PLS Saving Account-Local & Foreign Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Mudaraba PKR, Euro, USD, GBP Saving NA Minimum Balance Requirement (if NA NA On minimum monthly balance maintained. Half Yearly Individuals, Organizations, Firms, companies, businesses No Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Current Account Current Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Qard PKR, Euro, USD, GBP Current NA Minimum Balance Requirement (if NA NA NA NA Individuals, Organizations, Firms, companies, businesses NA Service charges Leviable (if any) Service charges Leviable (if any) Term Deposit Term Deposit Mudaraba PKR Term Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product 25 Islamic Banking Department Islamic Banking Department

  31. Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Minimum Balance Requirement (if NA 2 Years 3 Years Daily Product Basis At maturity/Half Yearly Individuals, Organizations, Firms, companies, businesses NA Service charges Leviable (if any) Service charges Leviable (if any) AlBaraka Incentive Account AlBaraka Incentive Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Saving Rs.100,000 Minimum Balance Requirement (if NA NA Daily Product Basis Half Yearly Individuals, Organizations, Firms, companies, businesses NA Service charges Leviable (if any) Service charges Leviable (if any) AMI Joint Pool Account AMI Joint Pool Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Term Rs.50,000 Minimum Balance Requirement (if 3 months 5 Years Daily Product Basis Half Yearly basis Individuals, Organizations, Firms, companies, businesses NA Service charges Leviable (if any) Service charges Leviable (if any) 26 Islamic Banking Department Islamic Banking Department

  32. 3. BANK ISLAMI PAKISTAN LIMITED 3. BANK ISLAMI PAKISTAN LIMITED Asset Side Product Asset Side Product Murabaha Murabaha Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME KIBOR Minimum Financing Limit Minimum Financing Limit As approved by bank's credit committed Maximum Financing Limit Maximum Financing Limit Rs.900 million (linked with bank's equity) 15 days 180 days Corporate, SME Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Cash margin, Equitable/registered mortgaged, pledge of stocks/shares, Hypothecation charge on current assets Ijara (corporate) Ijara (corporate) Underlying Islamic Mode Underlying Islamic Mode Ijara Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME KIBOR Minimum Financing Limit Minimum Financing Limit As approved by bank's credit committed Maximum Financing Limit Maximum Financing Limit Rs.900 million (linked with bank's equity) 3 Years 5 Years Corporate, SME Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required ownership of the leased asset, security margin, PGs 27 Islamic Banking Department Islamic Banking Department

  33. Diminishing Musharaka Diminishing Musharaka Underlying Islamic Mode Underlying Islamic Mode Combination of Shirkat-ul-milk and Ijara Corporate, SME KIBOR Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit As approved by bank's credit committed Maximum Financing Limit Maximum Financing Limit Rs.900 million (linked with bank's equity) 3 Years 5 Years Corporate, SME Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required ownership of fixed asset, security margin, PGs Islamic Export Refinance Scheme Islamic Export Refinance Scheme Underlying Islamic Mode Underlying Islamic Mode Musharaka and Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME SBP IERS rate plus bank's spread Minimum Financing Limit Minimum Financing Limit As approved by bank's credit committed Maximum Financing Limit Maximum Financing Limit Rs.900 million (linked with bank's equity) 180 Days 180 Days Corporate, SME Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Cash Margin, Equitable or registered mortgage, Pledge of Stocks etc 28 Islamic Banking Department Islamic Banking Department

  34. Istisna Istisna Underlying Islamic Mode Underlying Islamic Mode Istisna Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME KIBOR Minimum Financing Limit Minimum Financing Limit As approved by bank's credit committed Maximum Financing Limit Maximum Financing Limit As approved by bank's credit committed Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 30 Days 180 Days Corporate, SME Security/Collateral Required Security/Collateral Required Cash Margin, Equitable or registered mortgage, Pledge of Stocks etc Sight Bills Purchase Sight Bills Purchase Underlying Islamic Mode Underlying Islamic Mode Bai Surf Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME based on Treasury ready ruling rates Minimum Financing Limit Minimum Financing Limit Depends on the kind of exposure limit as advanced by the Treasury Department Depends on the kind of exposure limit as advanced by the Treasury Department 7 Days 30 Days Corporate, SME Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Lien on Sight LC/Bill document, Cash Margin, Equitable/registered mortgage, Hypothecation charge on fixed asset/on current assets,PGs 29 Islamic Banking Department Islamic Banking Department

  35. Usance Bill Purchase Usance Bill Purchase Underlying Islamic Mode Underlying Islamic Mode Murabaha for purchase of fresh raw material Corporate, SME based on Treasury ready ruling rates Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Depends on the kind of exposure limit as advanced by the Treasury Department Depends on the kind of exposure limit as advanced by the Treasury Department 30 Days 180 Days Corporate, SME Maximum Financing Limit Maximum Financing Limit Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Lien on Sight LC/Bill document, Cash Margin, Equitable/registered mortgage, Hypothecation charge on fixed asset/on current assets, PGs Auto Ijarah Auto Ijarah Underlying Islamic Mode Underlying Islamic Mode Ijarah Type of Product Type of Product Basis for Pricing Basis for Pricing Consumer Faced rack rates as decided by Management. Rs.250000 Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Rs. 1,500,000 Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 3 Years 5 Years Salaried Individual Corporate /SME at present. /Businessmen & 30 Islamic Banking Department Islamic Banking Department

  36. Security/Collateral Required Security/Collateral Required Ownership of leased vehicle; Security Margin; Personal Guarantee Muskun Housing Finance Muskun Housing Finance Underlying Islamic Mode Underlying Islamic Mode Diminishing Musharaka & Ijarah Type of Product Type of Product Basis for Pricing Basis for Pricing Consumer KIBOR based Minimum Financing Limit Minimum Financing Limit Rs.200,000 Maximum Financing Limit Maximum Financing Limit RS.50,000,000 Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 2 Years 20Years Salaried Individual/Businessmen & Corporate /SME at present. Equitable/Registered Mortgage on Property Security/Collateral Required Security/Collateral Required 31 Islamic Banking Department Islamic Banking Department

  37. Liability Side Products Liability Side Products Islami Current Account Islami Current Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Qarz PKR, USD, GBP, EUR and JPY Current Rs.1000 Minimum Balance Requirement (if NA NA NA NA Salaried Individuals, businesses Corporateand SME No, deposit charges. Other charges as per Schedule of Service Charges. Service charges Leviable (if any) Service charges Leviable (if any) Islami Bachat Account Islami Bachat Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR, USD, GBP, EUR and JPY Saving Rs.100 Minimum Balance Requirement (if NA NA Daily Product Basis Monthly Salaried Individuals, businesses Corporateand SME No, deposit charges. Other charges as per Schedule of Service Charges. Service charges Leviable (if any) Service charges Leviable (if any) 32 Islamic Banking Department Islamic Banking Department

  38. Islamic Mahana Munafa Account Islamic Mahana Munafa Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Term Rs.10,000 Minimum Balance Requirement (if 5 Years (Premature withdrawal allowed) 5 Years Monthly basis Monthly Salaried Individuals, businesses Corporateand SME No, deposit charges. Other charges as per Schedule of Service Charges. Service charges Leviable (if any) Service charges Leviable (if any) Islamic Amadani Certificate Islamic Amadani Certificate Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudaraba PKR Term Rs.10,000 Minimum Balance Requirement (if 1 Month 5 Years Quarterly basis Quarterly Salaried Individuals, businesses Corporateand SME No deposit charges. Other charges as per Schedule of Service Charges. Service charges Leviable (if any) Service charges Leviable (if any) 33 Islamic Banking Department Islamic Banking Department

  39. 4. EMIRATE 4. EMIRATES S GLOBAL ISLAMIC BANK LIMTED GLOBAL ISLAMIC BANK LIMTED Assets Side Products Assets Side Products Auto Ijara Auto Ijara Underlying Islamic Mode Underlying Islamic Mode Ijara MBT Type of Product Type of Product Basis for Pricing Basis for Pricing Consumer Fixed for initial 1 year, repricing will be possible with mutual consent thereafter Rs.0.2 million Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Rs.2.5 million Minimum Tenors Minimum Tenors New Vehicle 36 months, Used 24 months New Vehicle60 months, Used 36months Salaried, Self employed, businessmen Maximum Tenors Maximum Tenors Target Customers Target Customers Security/Collateral Required Security/Collateral Required Security deposit, post dated cheques and comprehensive takaful /insurance Finance Against Imported Merchandise Finance Against Imported Merchandise Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Corporate, SME and Investment Banking depend on the credit worthiness of the client No Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRs Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers No 1 Year SME, Local Corporate and Blue Chip Co. Security/Collateral Required Security/Collateral Required pledge of commodity finance inclusive of margin, Hypothecation, Mortgage, Personal guarantee, Cash margin, Lien, etc. 34 Islamic Banking Department Islamic Banking Department

  40. Finance Against Trust Receipt Finance Against Trust Receipt Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Corporate, SME and Investment Banking depend on the credit worthiness of the client No Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRs Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers No 1 Year SME, Local Corporate and Blue Chip Cos. pledge of commodity finance inclusive of margin, Hypothecation, Mortgage, Personal Guarantee, cash margin, Lien, etc. Security/Collateral Required Security/Collateral Required Murabaha Finance Local Murabaha Finance Local Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Corporate, SME and Investment Banking depend on the credit worthiness of the client No Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRs Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers No 3Year SME, Local Corporate and Blue Chip Cos. pledge of commodity finance inclusive of margin, Hypothecation, Mortgage, Personal Guarantee, Cash Margin, Lien, Security/Collateral Required Security/Collateral Required 35 Islamic Banking Department Islamic Banking Department

  41. etc. Export Murabaha Financing(Pre-Shipment) Export Murabaha Financing(Pre-Shipment) Underlying Islamic Mode Underlying Islamic Mode Murabaha Financing Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, SME, Investment Banking. Depends on the credit Worthiness of respective customer. No Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRs Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers No 6 Months(180 Days) SME, Local Corporate& Blue Chip Co. & Corporations. Pledge of commodity finance inclusive of margin, Hypothecation, Mortgage, Personal Guarantee, Cash Margin, Lien, etc. Security/Collateral Required Security/Collateral Required Direct Ijarah Financing Direct Ijarah Financing Underlying Islamic Mode Underlying Islamic Mode Ijarah Type of Product Type of Product Corporate, SME and Investment Banking depend on the credit worthiness of the client No Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRs Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 2 Years 5 Year SME, Local Corporate and Blue Chip Cos. 36 Islamic Banking Department Islamic Banking Department

  42. Security/Collateral Required Security/Collateral Required Ownership of the Ijara assets financed, hypothecation, Mortgage Cash Margin, Lien, etc. Sale & Lease Back Ijarah Financing Sale & Lease Back Ijarah Financing Underlying Islamic Mode Underlying Islamic Mode Ijarah Type of Product Type of Product Corporate, SME and Investment Banking Depends on the credit Worthiness of respective customer. No Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRs Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 2Years 5 years SME, Local Corporate& Blue Chip Co. & Corporations. Ownership of the Ijara assets financed, hypothecation, Mortgage Cash Margin, Lien, etc. Security/Collateral Required Security/Collateral Required Al-Bait Home Finance Al-Bait Home Finance Underlying Islamic Mode Underlying Islamic Mode Diminishing Musharakah (Shirkat-ul- Milk) Consumer Finance 1Year Kibor = (Floor:2.00%)(Ceiling: 7.00%) As per PRs Type of Product Type of Product Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit As per PRS Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 3 years 20 Years Age: 21-60, Net disposable monthly income:Min.Rs.20,000/-, Pakistani, Salaried or Self-Employed/Business, Relationship: Deposit Account with any 37 Islamic Banking Department Islamic Banking Department

  43. Rahnuma-Travel Services Rahnuma-Travel Services Underlying Islamic Mode Underlying Islamic Mode Dayn Type of Product Type of Product Basis for Pricing Basis for Pricing Consumer Finance No, markup financing(only recovered installments). Service charges from Travel agent. from principal in customers on be will monthly equal Minimum Financing Limit Minimum Financing Limit Maximum Financing Limit Maximum Financing Limit Rs. 500,000/- Bank in Pakistan, Should not be in the default list. Equitable/Registered Mortgage, MODTD, Post dated cheques. Security/Collateral Required Security/Collateral Required 38 Islamic Banking Department Islamic Banking Department

  44. Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 6 months 12 months. Age:21-60, Net disposable monthly income:Min.Rs.12,000/-, Salaried only, Relationship: Deposit Account with any Bank in Pakistan. Post dated cheques, Hypothecation. Pakistani, Security/Collateral Required Security/Collateral Required letter of Salam Financing Salam Financing Underlying Islamic Mode Underlying Islamic Mode Salam/Parallel Salam Type of Product Type of Product Corporate, SME, Agriculture, Commodity Financing KIBOR/Market(Asset Discounting) Basis for Pricing Basis for Pricing Minimum Financing Limit Minimum Financing Limit No Maximum Financing Limit Maximum Financing Limit Rs.900 million per party Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 30 Days 360 Days Corporate /SME/ Agriculture/Commercial Yes Security/Collateral Required Security/Collateral Required 39 Islamic Banking Department Islamic Banking Department

  45. Liability Side Products Liability Side Products Saving Account Mudaraba Saving Account Mudaraba Mudaraba PKR Saving Rs.10,000 for the entitlement of profit Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Minimum Balance Requirement (if NA NA Average Monthly Monthly Individuals, sole proprietors, partnerships, companies, clubs, societies etc. NA Service charges Leviable (if any) Service charges Leviable (if any) Charity Account Charity Account Mudaraba(Same as Saving Account) PKR Saving Rs.10,000 for the entitlement of profit Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Minimum Balance Requirement (if NA NA Average Monthly Monthly Charity Organizations NA Term Deposit Mudaraba Term Deposit Mudaraba Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Mudaraba PKR Term Deposit Rs.10,000 for the entitlement of profit Minimum Balance Requirement (if 1 month 40 Islamic Banking Department Islamic Banking Department

  46. Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation 5 years Daily Product Monthly, Quarterly, Half Yearly, Yearly, maturity Individuals, sole proprietors, partnerships, companies, clubs, societies etc. NA Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Basis Banking Account Basis Banking Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Qard PKR Current Account Nil Minimum Balance Requirement (if NA NA NA NA Individuals only Rs.25 if transactions exceeds in a month from 2 deposit and 2 withdrawals Current Account Current Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Qard PKR, USD, GBP, Euro and JPY Current Account Rs.10,000 USD 1,000 GBP 1,000 JPY 150,000 NA NA NA NA Individuals, sole proprietors, partnerships, companies, clubs, societies etc. Nil Minimum Balance Requirement (if Service charges Leviable (if any) Service charges Leviable (if any) 41 Islamic Banking Department Islamic Banking Department

  47. Rahnuma Travel Services Rahnuma Travel Services Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor MaximumTenor MaximumTenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Service charges Leviable (if any) Service charges Leviable (if any) Mudarbah PKR Saving Account No minimum balance Minimum Balance Requirement (if Nil Nil Monthly Average Monthly Individuals (18 years & old) Rs.500/- (for documents processing) Mudaraba Premium Plus Mudaraba Premium Plus Mudaraba PKR Saving Rs.50,000(Individual) Rs.500,000 (Corporate) NA NA Daily Product Basis Monthly Individuals, partnerships, companies, clubs, societies etc. Service charges Leviable (if any) Service charges Leviable (if any) NA Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Minimum Balance Requirement (if sole proprietors, Foreign Currency Saving Account Mudarabah Foreign Currency Saving Account Mudarabah Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Mudarabah USD,GBP, Euro& JPY Saving USD =1000, GBP=1,000, EURO= 1,000, JPY =150,000 Minimum Balance Requirement (if 42 Islamic Banking Department Islamic Banking Department

  48. Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Nil Nil Monthly Average Monthly Individuals, sole proprietors, partnerships, companies, clubs, societies etc. Nil Service charges Leviable (if any) Service charges Leviable (if any) Foreign Currency Term Deposit Mudarbah Foreign Currency Term Deposit Mudarbah Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Mudarabah USD,GBP, Euro& JPY Term Deposit US$ 10,000 & Equivalent in other currencies. 1 month 6 months Daily Product At Maturity Individuals, sole proprietors, partnerships, companies, clubs, societies. Nil Minimum Balance Requirement (if Service charges Leviable (if any) Service charges Leviable (if any) UAE Dirham Saving Account UAE Dirham Saving Account Mudaraba UAE Dirham Saving Account AED 5,000/- (only for opening an account) Nil Nil Monthly Average Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Minimum Balance Requirement (if Semi Annually Individuals, sole proprietors, partnerships, companies, clubs, societies. As per prevailing Schedule of Bank Charges, free Service packages on Service charges Leviable (if any) Service charges Leviable (if any) 43 Islamic Banking Department Islamic Banking Department

  49. maintaining minimum average monthly balance of UAE Dirham 150,000 UAE Dirham Current Account UAE Dirham Current Account Underlying Islamic Mode Underlying Islamic Mode Acceptable Currency Acceptable Currency Type of Product Type of Product Minimum Balance Requirement (if any) any) Minimum Tenor Minimum Tenor Maximum Tenor Maximum Tenor Profit Calculation Profit Calculation Periodicity of profit calculation Periodicity of profit calculation Target Customers Target Customers Qard(Loan) UAE Dirham Current Account AED 5, 000/-(only for opening an account) Nil Nil Nil Nil Individuals, sole proprietors, partnerships, companies, clubs, societies etc. Nil Minimum Balance Requirement (if Service charges Leviable (if any) Service charges Leviable (if any) 44 Islamic Banking Department Islamic Banking Department

  50. 5. DUBAI ISLAMIC BANK LIMITED 5. DUBAI ISLAMIC BANK LIMITED Asset Side Products Asset Side Products Murbaha for Purchase Order (local) Murbaha for Purchase Order (local) Underlying Islamic Mode Underlying Islamic Mode Murabaha Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, Commercial and SME Cost plusmutually agreed profit. Minimum Financing Limit Minimum Financing Limit As per prudential regulations Maximum Financing Limit Maximum Financing Limit As per prudential regulations Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers NA 1 year Manufacturing industries, Construction Industries, Traders and Individuals Hypothecation of assets, Charge on current & fixed assets or any other security deem necessary by the bank Security/Collateral Required Security/Collateral Required Financial Ijarah/Ijarah MBT Financial Ijarah/Ijarah MBT Underlying Islamic Mode Underlying Islamic Mode Ijarah Type of Product Type of Product Basis for Pricing Basis for Pricing Corporate, Commercial and SME Floating Rate based on KIBOR Minimum Financing Limit Minimum Financing Limit As per prudential regulations Maximum Financing Limit Maximum Financing Limit As per prudential regulations Minimum Tenors Minimum Tenors Maximum Tenors Maximum Tenors Target Customers Target Customers 90 days 5 year Manufacturing industries, Construction Industries, Transportation Industries Hypothecation of assets, Charge on current & fixed assets or any other security deem necessary by the bank Security/Collateral Required Security/Collateral Required 45 Islamic Banking Department Islamic Banking Department

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