Dedication

“The Allah Almighty and Holly Prophet Mohammad (PBUH) from where all frameworks and measures for first-rate may be downloaded specifically, which can be fabric all around; from regular lifestyles to the progressively changing enterprise circumstance”. And “My Dear guardians and Teachers who showed me the genuine significance of existence” Preface.

It is the need of the BBA (Hons) Banking and Finance course Bahauddin Zakariya University that every one understudies of BBA want to burn thru a month and a 1/2 in any affiliation to get available publicity and to get familiar with the methods to stay in the hierarchical condition that’s dramatically not quite similar to the instructive condition. That a month and a 1/2 duration known as “Internship Period “, if spent correctly and surely, empowers the understudies to be extra assured, extra educated, more conscious and, most importantly, greater devoted to its working the right down to earth subject. I have likewise been allocated to do entry degree role of a month and a half duration in ALBARAKA BANK, Main Branch. It has empowered me to understand the accessible state of affairs and hone our desire making electricity and using the assets in a viable way, with the intention that our belongings generate maximum profit. In putting in place this report, I actually have positioned the more part of my earnest attempts and tried my degree satisfactory to provide maximum learning.

Regardless of everything the reasonable endeavors, I do agree with that there’ll always be an opportunity to get better inside the endeavors of scholar like me. Acknowledgement. Most importantly, I need to specific the whole thing of my modest due to ALLAH who is extremely touchy about every remaining movement of every one in all his men and without whose assistance, I can’t attain any target in my life. All regard to his Holy Prophet HAZART MUHAMMAD (Peace Be upon Him) who introduced the light of data while the mankind become meandering inside the wasteland of numbness. Furthermore, I am thankful to my renowned foundation that made his getting to know possibility a chunk of our preparation, particularly.

I am likewise grateful to each different educator as the statistics bestowed by way of them empowers me to pick up mastering of the association in most best way. I might likewise thank to all of the group of workers of ALBARAKA BANK, specially BRANCH MANAGER Mr. Ahsan Malik, OPERATION MANAGER Mr. Muhammad Ramzan, Mr. Masood Amir, Mr. Saqib, Mr. Hameed and Ma’am Ghazal who offers me a risk to work in the financial institution and allowed me to research my insight. I gift my honest attributable to my warm guardians, who dependably stays at my returned to assist me, I can never provide the appearance of their un worn-out conflict for me, yet I can simply substantiate myself as they expect from me. I am likewise appreciative to all different household and each one of my partners for his or her ethical boosting and profound assist amid my investigation and mainly on this transient activity software (As Internee). I went to pay appreciation to all people, who had helped me in finishing this Internship.

CHAPTER 1. EXECUTIVE SUMMARY.

This file is set my temporary position application with ALBARAKA BANK PAKISTAN. In this thorough document, I actually have mentioned each actual part of the financial institution, which I watched and noticed amid my brief role software. In this report you’ll discover the insight about the bank best from its joining to the existing position.

Alongside it, the techniques, procedures and methods of the bank are additionally tested in element. Amid my transient role program, I for the maximum part worked in Retail Banking, General Banking and Finance. Every one of the workplaces have been talked about in element and each one of the preparations and techniques have been portrayed altogether. As the principle motivation at the back of transient position is to analyze through running in accessible condition and to use the information received amid the examinations in a certifiable state of affairs keeping in mind the give up goal to handle the troubles using the studying and expertise got the cling of amid the scholarly method, In this file the point via factor research of the affiliation has been done and all the budgetary, specialized, administrative and crucial viewpoints were assessed to break down the prevailing position of the affiliation.

This access level position file covers numerous imperative views that are basically related with the sports and monetary elements of the financial institution. At last the mastering and encounters location accommodates of the enormous number of techniques, methods, practices and strategies which I have skilled through and mastered amid my brief role software. This file likewise incorporates my recognitions about the representatives’ fulfillment, concept degree and the workplace of the affiliation. PREAMBLE Since it is required by way of the students of M.Com to begin a report on production or provider organization as Internships provide an opportunity to hyperlink concept with practice if you want to cope the distance between theoretical look at and real practices for better expertise that how it is finished in actual.

To satisfy this obligatory requirement I was assigned via my MENTOR to do a six week internship. The key purpose of this record is to significantly scrutinize and understand banking operations and endorse measures in the shape of solid and weighted hints for his or her greater perfection. I determined to do a complete evaluation of bank with appreciate to technology it has, its winning tradition and also its financial analysis. And then give concrete pointers and tips. To obtain my undertaking said above step one turned into to pick the agency so I were given the possibility to do internship in”Al Baraka Bank (Pakistan) Limited (ABPL) a pioneer in Islamic banking” my key reason turned into to look at how Conventional banking is different from Islamic banking I found out fundamental difference is at the a part of operations and use of finances.

I joined a 6 week internship for a sensible publicity of banking world I paintings from 9.00 to three.00 pm Daily I even have one day off in every week. I discover Al-baraka is acting its banking commercial enterprise in step with the set of legal guidelines of SBP. As the Al-baraka Gujranwala is a overseas subsidiary so its predominant merchandise are the similar as being supplied at head office. The imaginative and prescient and assignment of Al baraka also are stated in record along side the complete detail of hierarchy of bank. Then the work performed by using me all through the internship is likewise discussed and the ratio evaluation years 2009-2010. Then I actually have achieved the SOC analysis at the document to recognise approximately the strengths, opportunities and challenges that are being faced by the financial institution and they will should face in the close to destiny, through doing the SOC analysis I supply end on the bank performance and some pointers.

I actually have used my most efforts to gain my task stated above. I am certain that my effort would b fruitful for users. In this brief span of time I feel the surroundings of al-baraka is quite friendly due to the fact I did no longer experience any expert jealously, leg pulling and some other such factor. Introduction of ALBARAKA BANK PAKISTAN LIMITED.

With a vision for one offerings, determination to Muslim standards of banking, growing community factors, and progressive product, Al Baraka Bank (Pakistan) confined is committed to the enterprise in Asian state. Al Bank (Pakistan) constrained (ABPL) is that the effects of a merger between Al Baraka Muslim Bank Asian kingdom (AIBP), the branch operations of Al Baraka Muslim Bank (AIB) Bahrain and Emirates world Muslim Bank (Pakistan). The integrated entity started out operations on Gregorian calendar month first 2010. The merger, a number one in the Muslim Banking region in Asian state, positions Al Baraka Bank (Pakistan) restricted ABPL to play a very crucial role in additional growing partner degree business that has witnessed fantastic boom over the past 5 years. With property in manner over Rs.

Fifty billion; a arms of 1400 specialists and a community of 80 nine branches in thirty six towns and cities across Asian state, Al Baraka Bank (Pakistan) confined is devoted in offering clients with a ramification of shariah regulation compliant product to healthy their banking wishes. Faced with growing challenges throughout this speedy growing market, Al Baraka Bank (Pakistan) limited ABPL powerfully depends on its potential to be an green market participant thru revived specialise in advanced patron service, development of Muslim options to traditional investment facilities, and strict adherence to shariah law rulings and principles. Al Baraka Bank (Pakistan) restrained, offers a very good array of Muslim funding product like Murabaha, Ijarah and Musharakah and so on., activity to a diverse cross-sectional of the financial system as well as the corporation, SME and shopper sectors. Moreover, numerous shariah law compliant deposit schemes are also obtainable for patrons to invest their finances in, together with quite a number alternative auxiliary offerings like online branch banking, ATM/debit card, SMS banking, and digital statement of accounts, secure deposit lockers and software bill bills.

The Asian country Credit Rating Agency (PACRA) has allotted long-run and brief score entity A, and A2 severally. These ratings denote a lower expectation of credit score threat emanating from a effective capability for well timed payments of monetary commitments. It is part of Al Baraka Bank (Pakistan) constrained dedication, to location the client’s values foremost, as a result imparting them with a banking answer that is consistent with their beliefs. MEANING OF BANK. Finance is that the lifestyles blood of alternate, trade and commercial enterprise. Now-a-days, banking region acts due to the fact the backbone of new business.

Development of any country principally depends upon the industry. The term financial institution is either derived from Italian word Banca or from a French phrase banque every suggest a Bench or coins trade table. Some authorities have the opinion that “Bank” comes from the “Germen” phrase lower back that to the approach of “joint inventory fund”. The bank may be an establishment that borrows coins from one celebration and lends to the opposite birthday party (Government, character, commercial enterprise) and therefore the difference between borrowing and disposal charge of income/Interest for the bank. Bank borrows and lends cash on interest foundation. DEFINITION OF Bank.

Oxford lexicon defines a financial institution as “an group for custody of coins that it pays out on patron’s order.” IMPORTANCE OF BANK. Banks place unit critical as a result of they’re intermediaries. They permit the ones to be able to use extra money and wish to borrow to seek out folks with more money to lend. The additionally give dealing services allowing payments to be created by means of test or wire. WHAT IS AL BARAKA BANK PAKISTAN? AL Baraka Muslim Bank (AIB) may be a member of AL Baraka Banking cluster (ABG) that could be a Bahraini Joint Stock Company indexed on Bahrain and city inventory exchanges and one in all the famous main global Muslim banks.

AL Baraka Banking cluster is that the biggest Muslim banking cluster listed at the Bahrain Stock ? Exchange in terms of capitalization. It’s been rated through common ; Poor’s as BBB- with a short-run score of A-3. The certified capital of ABG is US$1.5 billion, while the whole equity amounts to regarding US$ one.Fifty nine billion. With belongings of US$eleven.2 billion, the cluster includes a huge geographical presence within the fashion of subsidiary banking Units in fifteen nations that successively provide their services thru pretty 700+ branches.

Al creator presently contains a strong presence in Democratic and Popular Republic of Algeria, Bahrain, Egypt, Jordan, Lebanon, Pakistan, African country, Sudan, Syria, Tunis, Turkey, Indonesia, Libya, Republic of Iraq and Asian usa. Al – Baraka’s Commitment to Islamic Banking. Al-Baraka Islamic Bank associated Al-Baraka Banking cluster area unit definitely committed to expand and sell an included Islamic monetary set-up. Compliance with the principles and concepts of Islamic sharia regulation is that the middle of the banking and monetary sports and its philosophy. All its banking sports vicinity unit terribly intently regulated by a Board of sharia regulation advisers primarily based mainly at the pinnacle place of job in Bahrain and a sharia regulation Advisor based totally in Pakistan, to confirm strict compliance with the very great requirements of Islamic Banking principles. Present standing in Asian us of a.

Presently the certified capital of Al – Baraka Muslim is United States of America $ one.Five billion, while the general equity quantities to concerning United States of America $ one.Five billion. The cluster consists of a huge geographical presence inside the type of Subsidiary banking gadgets in that successively supply their offerings thru quite branches. Presently there are 1900+ people enticing at definitely unique branches of Al – Baraka Muslim at Asian usa. With belongings in greater than Rs.

Ninety billion; a personnel pretty 1900+ professionals and a community of one hundred fifty branches in ninety 4 cities and cities across Asian us of a. COMMERCIAL BANK. Commercial banks are the most commonplace shape of banks. They conduct their business strictly on earnings reason.

The most perform of a poster financial institution is to accept deposits from people who’ve surplus price range and lend on hobby to folks who want budget. The industrial financial institution of Pakistan, the Habib Bank confined, the Muslim financial institution restricted, the United Bank constrained, are some of the samples of business banks in Pakistan. Commercial is engaged in playing the habitual obligations of banking commercial enterprise. Such bank collects coins from the people (as borrowing) and extends same cash as a mortgage for development functions. Bank plays an essential role within the monetary improvement of a rustic with the aid of playing the variety of operate as given underneath:

1. Exceptive of deposits (Current, saving and stuck account).

2. Creating loans and advances (overdraft, money credit, discounting invoice). Three. Agency offerings to customers (Collection of cheques, dividends, Electricity, water and fuel payments, and sale of securities, and acts as a Trustee.

4. General software offerings (Foreign enterprise, Issue character cheques, providing trade statistics).

HISTORICAL DEVELOPMENT OF BANK. History of bank is extremely old; the history of bank is derived to as early as 2000 B.C. The priest in Ella’s wont to maintain cash and valuable of the people in temples. Its origin is additionally derived to early goldsmiths.

They received’t to keep sturdy safe, for storing the cash and opportunity treasured of the people. Individuals with surplus cash deposited with them. The number one level within the development of banking become the reputation of deposits from individuals. Shortly goldsmiths started out to trouble receipts for the money deposited with them to settle transactions. These receipts had been applied in charge of debt and proper to all or any.

This turned into the second one level in the direction of the occasion of banking. As soon as goldsmiths achieved that they’d surplus cash accordingly they supposed to lend a few portion of cash to he nearly traders and merchants WHO perpetually asked for loans This business was quiet worthwhile and that they instead of charging interest from depositors started to permit interest on the cash deposited with them to attract in a number of individuals this was the third level towards the occasion of banking. They conjointly planned to allow the consumers to withdraw in greater than the quantity deposited to meet the purchaser’s desires. This facility is named draft and they received’t to keep some part of cash for this purpose. When it slow there was then commenced too much confusion within the enterprise and they were not prepared to meet the strain of consumers. This failure at the part of cash investor to return cash brought about misery many of the people.

To beat this downside people felt that there should be a bank that control the banking activities of various loaning organization. As a consequences of convention manage in 1548 at city middle. The choice became taken in want of constructing a bank that regulates the banking sports. The primary bank changed into located in Geneva in 1587.

Shortly several alternative banks were set up can an equal goal. We will conclude that industrial industry definitely developed in nineteenth century. Currently a days the banking sports has greatly more advantageous business banks rectangular degree currently multi repaired companies and play a totally essential function in financial markets and in the financial development of the us of a. HISTORY OF (AIB – BAHRAIN) Al Baraka Islamic Bank – Bahrain (AIB – Bahrain) set up 1984 in Bahrain and up the years has pioneered the development of Islamic banking and finance. The Bank is registered with the Bahrain Ministry of Industry ;, Commerce CR no. 14400 and is allowed by using Central Bank of Bahrain (CBB) as Retail Bank, with a certified capital of US$ 600 Million, of which US$ 122 Million has been issued and absolutely paid.

AIB – Bahrain is one of the Banking Units of Al Baraka Banking Group’s (ABG). ABG is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock exchanges and one of the famous main global Islamic banks. It has been rated by way of Standard & Poor’s as BBB- with a brief-time period rating of A-3. ABG gives retail, corporate and investment banking and treasury offerings strictly according with the ideas of the Sharia’a. The authorized capital of ABG is US$1.Five billion, whilst the total fairness quantities to about US$ 1.Five billion. The Group has a wide geographical presence inside the shape of subsidiary banking Units in 12 international locations, which in turn provide their services thru extra than 240 branches.

These banking Units are Jordan Islamic Bank/ Jordan, Al Baraka Islamic Bank – Bahrain, Al Baraka Islamic Bank/ Pakistan, Banque Al Baraka D’Algerie/ Algeria, Al Baraka Bank Sudan/Sudan, Al Baraka Bank Ltd/ South Africa, Al Baraka Bank Lebanon/Lebanon, Bank Et-Tamweel Al- Tunisi Al Saudi/ Tunisia, The Egyptian Saudi Finance Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Al Baraka Bank Syria (under establishment), and Representative office, Indonesia. AIB – Bahrain with a longstanding track document of turning in excellence, innovation and advanced consequences, the Bank ranks a number of the main carriers of Islamic investment banking products and services to a developing international clients, centered exclusively on the development and transport of unique investment solutions of Sharia’a compliant. Thanks to its potential to consistently deliver modern, but simple investment strategies grounded inside the breadth and depth of its experience and resources, consisting of a senior control team with a collective historical past in severa areas of Islamic banking. The Bank recently has fully merged with Al Amin Bank, Bahrain (Al Amin), and a sister employer and member of ABG.

Al Amin will retain serving its specific brief time period belongings lower back securities “Isdaraat Al Amin” within the merged entity. Al Amin has up to now controlled over US$ 4 billion in price range on behalf of leading monetary institutions and high internet-really worth customers looking for unrivaled short time period funding answers that rend lengthy-term economic blessings. AIB – Bahrain supported by means of the lengthy culture of power and sturdy monetary function of its determine employer ABG, anticipate high-quality of investments, electricity of overall performance and a valid economic role, the Bank have loved a commendable marketplace recognition because the leading short-time period liquidity manager for institutional traders. The sources and abilties to be had to the Bank guarantee its achievement in executing its firm strategies.

GOALS OF ALBARAKA BANK PAKISTAN LIMITED. It way in prioritizing values and elevating them on top of the mere attainment of company size and products range and shipping, Al Baraka Bank (Pakistan) confined believes that we’ll extend evidently and as a be counted in reality, because it build the kind of relationships with its clients that are supported genuine partnership with them. Al Baraka Bank (Pakistan) restrained believes that banking has, or have to be compelled to have, a important function to play in society, that location an implausible obligation of berth for the sources as bankers. To satisfy this duty and use the resources with know-how, Al Baraka Bank (Pakistan) constrained depends on sharia regulation ideas to induce steerage as it participate in its customers’ successes, sharing in the social improvement of families, corporations and society at giant. By ‘partnership’, therefore, be because of this that our success which of every of our customers are as tangled as our collectively manage beliefs.

Collaborating within the joint effort is accordingly our praise. We tend to peer coins as a technique to take gain of possibilities and make a better society for each person. Cash will become the medium by that we tend to enter into new possibilities alongside and participate in not unusual attempt for mutual reward. Al Baraka Bank (Pakistan) confined calls this concept: ‘Beyond Banking’ 1. To mobilize personal savings and public finances for fun an equivalent into effective channels and guarantee their accessibility.

To market commercial agriculture and socioeconomic method thru the active participation of personal and public area in the province. 2. Facilitate underneath evolved regions and make employment opportunities, specifically inside the rural regions of the province. Further, to manual and help the parents of Islamic Republic of Pakistan serving distant places to efficiently and productively invest their overseas savings within the province in addition as in alternative factors of Pakistan.

Three. Produce a heterogeneous and sound portfolio for utilization of idle price range and their funding inside the current and new ventures particularly inside the pioneering of excessive- techs agro-primarily based export minded and engineering task to make sure most returns. 4. Participative and achieve the percentage of the united states of america in the capital market of Islamic Republic of Pakistan by using approach of subscription via domestically inhabited resources in the main securities marketplace of the u . S .

A . And in the end paving the technique for setting up an change inside the province. AL BARAKA BANK PAKISTAN cluster LISTED groups. Company Governance Our semi-permanent agency fulfillment relies upon, amongst opportunity things, on our capability to behavior enterprise in a very accountable way. AL BARAKA BANK PAKISTAN has adopted the ‘The best Manager Code of professional Conduct’ advanced by means of the CFA Centre for financial Market Integrity for the desires of strengthening organisation governance, improving compliance culture, and selling moral and skilled standards among people. 6.

The code outline rating values that every one people, particularly fund managers, rectangular degree had to comply with once performing commercial enterprise operations or once interacting with colleagues, customers and alternative stakeholders. It moreover plays a essential position in guiding the Company’s efforts to encourage and preserve the trust and confidence of all its stakeholders. AL BARAKA PKISTAN GLOBAL CAPITAL LIMITED. With a vision for unrivaled offerings, willpower to Moslem principles of banking, growing community factors, and innovative line of commercial enterprise, Al BARAKA Bank (Pakistan) confined is dedicated to the banking device in Pakistan. Faced with growing challenges for the duration of this in a timely fashion developing marketplace, ABPL powerfully relies upon on its capacity to be low-cost an excellent and efficient market participant through revived concentrate on superior client provider, development of Moslem alternatives to conventional finance facilities, and strict adherence to Islamic regulation rulings and concepts.

The Pakistan Credit Rating Agency (PACRA). PACRA Has allotted long-run and brief rating entity A, and A1 severally. These rankings denote a decrease expectation of credit score chance emanating from a powerful functionality for timely bills of economic commitments. Moreover, a “Positive” outlook is allotted to the scores. These scores denote a coffee expectation of credit danger emanating from a powerful functionality for well timed price of financial commitments. The ratings reflect AL Baraka Bank’s affiliation with a effective.

Geographical area banking cluster. – AL Baraka Banking cluster. The ratings incorporate the impact of effective synergies emanating from the recent merger (between Emirates global Moslem Bank and Pakistan branches of AL Baraka Bank) in phrases of commonplace operative platform, improved profile, and extended marketplace stretch. While fleetly progressing the combination technique, the control is properly double-geared to benefit from the distended franchise via enforcing a sound enterprise set up.

AL BARAKA BANK PAKISTAN worldwide Capital restricted is one in each of the main funding banking and securities groups In West Pakistan. International Investment house KSCC, the main funding bank within the Middle East is a 43rd shareowner of the corporate. The predominant sports of ABPL are:- ? Equity, Fixed Income and Foreign Exchange Brokerage. ? Fixed Income and Money Market Sales.

? Equity Sales and Investment Advisory. ? Corporate Finance Advisory. ? Research ABPL is rated A (long time) and A1 (brief term) by the Pakistan Credit Rating Agency. AL BARAKA BANK LIMITED. Al Baraka Islamic Bank (Aib) has the delight of being the pioneer of Islamic keeping money in Pakistan and has been working in the kingdom as branches of Al Baraka Islamic Bank Bahrain on the grounds that 1991.

Throughout the years, the bank has effectively created and kept up its way of existence as one of the fundamental providers of a big organization of managing an account gadgets and administrations in strict consistence with Sharia’s requirements. Presently operating with 29 branches in 17 noteworthy urban areas of the kingdom, AIB gives a extensive cluster of Islamic financing objects, for example, Murabaha, Ijara, Musharaka and Islamic Fare Renegotiate, and so on., contemplating a various go-section of the economic system, inclusive of the Corporate, SME and Shopper segments. In addition, exceptional Shari’ah consistent save plans are reachable for clients to position their assets in, along an assortment of different subordinate administrations, for example, internet saving money, ATM/fee card, safe shop lockers and provider charge installments and so on. Al Baraka Islamic Bank (AIB) is an man or woman from Al Baraka Keeping money Gathering (ABG) that’s a Bahraini Business entity recorded on Bahrain and Dubai stock trades and one of the great using global Islamic banks. ABG is centered on extending its essence in Pakistan, which is obvious from the short improvement being embraced by Al Baraka Islamic Bank in the kingdom and its intends to have its Pakistan sports restricted as a Bank enrolled in Pakistan, for the duration of the following couple of weeks.

Expanding at the capacity and enjoy of its staff and the developing familiarity with Shari’ah-agreeable handling an account arrangements among the majority, AIB has effectively created itself as a noteworthy unit of ABG running inside the district, exploiting the Gathering’s land nearness and awesome modern paintings in Islamic cash associated items for its enterprise extension in the country. Looked with developing difficulties in this speedy developing marketplace, AIB firmly depends on its ability to be a possible and gifted market participant via reestablished middle around unrivaled client gain, improvement of Islamic contrasting alternatives to ordinary financing places of work, and strict adherence to Shari’ah decisions and standards. AL Baraka Managing an account Gathering is the best Islamic saving money bunch recorded at the Bahrain Stock Trade concerning capitalization. It has been appraised with the aid of Standard and Poor’s as BBB-with a fleeting rating of A-three. ABG offers retail, company and undertaking handling an account and treasury benefits entirely as in keeping with the standards of the Shari’ah. The accredited capital of ABG is US$1.5 billion, at the same time as the mixture value adds up to about US$ 1.Fifty nine billion.

With resources of US$eleven.2 billion, the Gathering has a extensive geological nearness as backup dealing with an account Units in 12 nations, which for this reason deliver their administrations through in excess of 250 branches. These coping with an account Units are Jordan Islamic Bank/Jordan, Al Baraka Islamic Bank/Bahrain, Al Baraka Islamic Bank/Pakistan, Banque Al Baraka D’Algerie/Algeria, Al Baraka Bank Sudan/Sudan, Al Baraka Bank Ltd/South Africa, Al Baraka Bank Lebanon/Lebanon, Bank Et-Tamweel Al-Tunisi Al Saudi/Tunisia, The Egyptian Saudi Fund Bank/Egypt, Al Baraka Turk Investment Bank/Turkey, Albaraka Bank Syria (below foundation), and delegate office, Indonesia. WHEN AL BARAKA BANK PAKISTAN KHANEWAL BRANCH WAS ESTABLISHIED. This Branch was set up on October 24, 2013 at T-CHOWK KHANEWAL to more inspire The Business humans group, other than giving association of trendy saving money to the natives and adjacent territories.

As of now it an on-line bank. BASIC FUNCTIONS OF AL BARAKA BANK PAKISTAN LIMITED. Accepting concerning deposits. A. Current account.

B. Saving account. C. Steadfast credit score tab.

Advancing of loans. A. Loans then advances. B.

Cash credits. Agency offerings. • Collection approximately cheques. • Transfer approximately savings past positive vicinity according with some other. • Assisting in imitation of Agriculture. • Act as like a Deputations or consultant over his customers.

• Collection over Negotiable Instruments. • Issuing Guarantees and Indemnities. • Granting of newspaper of credit General accurate functions. • Utility Bills series.

• Sale then encashment regarding Prize Bonds. • Issue regarding Travelers Cheques. • Supplying concerning Trade statistics. • Act as a referee Financing of Foreign Exchange.

ALBARAKA BANKING GROUP ORGANIZATIONAL PROFILE OOhhhhhh MANAGEMENT HIERARCHY SUBSIDIARY BANKING UNITS OF ABPL BOARD OF DIRECTORS: Shaikh Saleh Abdullah Kamel (Chairman): Shaikh Saleh, Saudi Arabian countrywide, is a well-known and particularly respected international businessman from Saudi Arabia. Shaikh Saleh Abdullah Kamel holds a Bachelor of Commerce diploma. He is the founder and President of Dallah Al Baraka Group and the founder of the Al Baraka Banking Group. He serves as a director at the boards of some of organizations and associations internationally. Currently he’s Chairman of the following organisations: General Council for Islamic Banks and Financial Institutions; Jeddah Chamber of Commerce & Industry; Council of Saudi Chambers; Federation of GCC Chambers and the Islamic Chamber of Commerce and Industry.

As a famend pioneer of Islamic banking and in recognition of his achievements and his function in promulgating Islamic financial concepts — encapsulated within the message of his institution: Reconstruction of the Earth – Shaikh Saleh Kamel has been awarded the highest of certificate, trophies, and accolades by many countries and firms over his lifetime. Mr. Abdulla A. Saudi (Vice Chairman) : Mr.

Saudi, Libyan country wide, is a international-renowned and revered international Banker. He holds a Certificate in Management and Accounting. He worked on the Central Bank of Libya for 14 years, conserving various positions consisting of that of Manager of the Banking Department and Head of the Foreign Investment Department. He changed into the founder of Libyan Arab Foreign Bank, wherein he served as Executive Chairman between 1972 and 1980, organising branches of the Bank international. He become the founder of Arab Banking Corporation (B.S.C.), Bahrain and served as its President & Chief Executive from 1980 to 1994.

He additionally founded Arab Financial Services (E.C.), Bahrain in 1982. In addition to being voted one of the “Most Innovative Bankers†by using the representatives of governments and global industrial bankers attending the International Monetary Fund and World Bank meetings in 1980, Mr. Saudi has gained many global accolades, together with an award at Georgetown University and the award “Best Banker†from the Association of Arab American Banks in New York in 1991. He was the first to acquire the “Arab Banker of the Year†award, in 1993, from the Union of Arab Banks.

In reputation of his role inside the improvement of banking relationships between Arab and European states, Mr. Saudi has received, over his career, several gold medals and awards, super among which are those provided in 1977 by means of the King of Spain and the President of Italy and that given to him by way of the President of Tunis in 1996. He is presently the Executive Chairman of ASA Consultants W.L.L., Bahrain Mr. Abdullah Saleh Kamel (Vice Chairman): Mr.

Abdulla, Saudi Arabian countrywide, is a reputable Saudi businessman, knowledgeable in Economic Studies at the University of California, USA. Mr. Abdulla Kamel has held a number of govt positions over the years at Dallah Group. He headed the actual estate and belongings control and valuable logistics department in the course of the length 1988-1989, was President’s Assistant for Trade Affairs 1989-1995 and held senior positions at Dallah Al Baraka Holding Company over the duration 1995-1999. Mr.

Abdulla Kamel is presently the Chairman of Aseer Company, Amlak Real Estate Development and Finance, Al Tawfeek Financial Group, Al Tawfeek Company for Investment Funds and Vice-Chairman of Bank Al-Jazira in Saudi Arabia and King Abdullah Economic City. He is also a Member of the Boards of Saudi Research & Marketing Group and Okaz Corporation for Journalism and Publishing. Mr. Abdulla Kamel has been and stays very energetic in public activities through his membership in lots of global and neighborhood organizations and institutions, including Jeddah Chamber of Commerce (of which he’s a past Member), Young Presidents’ Organization, Friends of Saudi Arabia, The Centennial Fund and the Board of Trustees of the Prince of Wales Business Leaders Forum.

Currently he is the Chief Executive Officer of Dallah Al Baraka Group — a function that he has held due to the fact 1999. Mr. Saleh Al Yousef (Member): Mr. Al Yousef, Kuwaiti country wide, holds a Bachelor’s Degree in Commerce from Kuwait University. Mr.

Al Yousef is a Kuwaiti businessman with sizeable revel in in the Banking enterprise. He served as Chairman and Managing Director of The Industrial Bank of Kuwait K.S.C. From 1988 to 2005. Prior to that, Mr.

Al Yousef held a number of govt positions with The Industrial Bank of Kuwait and the Central Bank of Kuwait. He has been Chairman of ABC Islamic Bank (E.C.), Bahrain and Chairman of ABC’s specialists council, Frankfurt. He served as a Director of the Financial Securities Group at some point of 1986. He has additionally served at the boards of a massive number of other monetary establishments, which include Gulf Bank K.S.C., Kuwait, Arab Banking Corporation (B.S.C.), Bahrain and Ahli United Bank B.S.C., London. He turned into Chairman and Managing Director of Afkar Holding Co. Till September 2010 and a Director of Gulf Investment Corporation until April 2010.

He presently serves as a Commissioner with the Kuwaiti Capital Markets authority. Mr. Adnan Ahmed Yousif (Board Member and President & Chief Executive): Mr. Yousif, Bahraini countrywide, holds a Master Degree in Business Administration, University of Hull, UK. Mr. Yousif has been a Director of Al Baraka Banking Group considering that its inception and President & Chief Executive for the reason that August 2004.

He is likewise Chairman of Jordan Islamic Bank, Banque Al Baraka D’Alg?©rie, Al Baraka Turk Participation Bank, Al Baraka Bank Ltd., South Africa, Al Baraka Bank Egypt, Al Baraka Bank, Lebanon, Al Baraka Bank Syria and Al Baraka Bank (Pakistan) Ltd., even as keeping directorships in Al Baraka Bank Sudan, Al Baraka Islamic Bank, Bahrain and Al Baraka Bank Tunisia. He has over 34 years’ worldwide banking revel in and has two times been the recipient of the “Islamic Banker of the Year†Award at the World Islamic Banking Conference, in December 2004 and December 2009. He changed into appointed Chairman of the Union of Arab Banks in May 2007 and has been re-elected for a further four yr time period in May 2010. Dr. Anwar Ibrahim (Member): Dr. Ibrahim, Malaysian national,is a famous and revered global determine.

He is living in Malaysia, in which he is a Member of Parliament. He has served his usa in many ministerial capacities together with those of Education Minister, Finance Minister and deputy Prime Minister of Malaysia. He turned into formerly a traveling professor at Georgetown University in Washington D.C. And turned into appointed Honorary President of the London based business enterprise Accountabiltiy (Institute of Social and Ethical Accountability). Dr. Ibrahim has been an independent nonexecutive director of Al Baraka Banking Group since March 2006.

Mr. Abdul Elah Sabbahi (Member): Mr. Sabbahi, Saudi Arabian countrywide, holds a Bachelor of Science degree in Accounting from the Faculty of Economics & Administration, King Abdul-Aziz University, Saudi Arabia. Mr. Sabbahi has had over 30 years’ experience in global banking, the remaining 20 of which with the Dallah Al Baraka Group in Saudi Arabia. He is currently Vice President, Dallah Al Baraka Group.

He additionally holds positions as Chairman of Al Baraka Bank Tunisia, Arab Leasing International Finance, Saudi Arabia, La Soci?©t?© de Promotion du Lac de Tunis, and BEST Lease, Tunis. Mr. Sabbahi is also a Member of the Boards of Dallah Al Baraka Holding Co. E.C., Bahrain; Algerian Saudi Leasing Ltd.; Al Amin Investment Co., Jordan; United Albanian Bank, Albania and a number of ther worldwide corporations Mr. Ibrahim Fayez Al Shamsi (Member): Mr. Al Shamsi, U.A.E.

Country wide, holds a Bachelor Degree in Commerce. He brings with him over 37 years’ various enjoy inside the economic offerings industry and in carrier of the U.A.E. Government. He is presently Chief Executive Officer of Emirates Islamic Bank and has been a Director of Arab Fund for Economic & Social Development, Kuwait for the reason that 1983.

Mr. Al Shamsi has been a Director of Al Baraka Banking Group considering the fact that August 2006. Mr. Jamal bin Ghalaita (Member): Mr. Ghalaita, U.A.E.

Countrywide, holds a Bachelor of Science and Business Administration degree from the University of Arizona, USA. He is a Banker whose profession spans over twenty years with Emirates Bank, all through which he set up a string of specialisations in Corporate banking, Retail banking, Trade Finance, Human Resources, Private Banking, Asset Management and Consumer Finance. He is presently Chairman of Emirates Money and a director of Emirates Islamic Bank, similarly to being Group Deputy CEO and General Manager — Consumer Banking and Wealth Management at Emirates NBD. Mr.

Yousif Ali Fadil Bin Fadil (Member): Mr. Fadil, U.A.E. Countrywide, is a Banker with a Bachelor’s Degree in Mathematics ; Computer Science from Gonzaga University, Spokane, Washington State, USA. During the duration 1985— 1998, Mr.

Bin Fadil held some of senior positions in the National Bank of Umm Al Quwain. He then served Dubai Islamic Bank as Executive Manager for Investment over the duration 2000-2002. In 2003 he turned into appointed General Manager of the Emirates Financial Company. During the duration 2004-2006 he served Abu Dhabi Islamic Bank as Deputy Chief Executive Officer. Mr. Bin Fadil has additionally served as member of the board of directors of several financial institutions consisting of, amongst others, Union Insurance Company, U.A.E., Bahrain Islamic Bank and Bosnia International Bank.

Currently he’s the General Manager of Al Sahil Equity Center. Mr. Samer Mohammed Farhoud (Member): Mr. Farhoud, Saudi Arabian countrywide, holds a Bachelor of Computer Science and Engineering Degree from the University of Petroleum and Minerals, Dhahran, Saudi Arabia.

Eng. Farhoud has had over 24 years’ enjoy in banking and has held some of senior positions in his profession, which include that of Deputy Treasurer at Al Rajhi Bank in Riyadh for two years to December 2007 and Chief Executive Officer of Fahad Abdulla Al Rajhi Holding Co., Riyadh among January 2007 and August 2010. Prior to that he held diverse positions along with Head of Treasury Sales and Marketing Unit in Arab National Bank, Riyadh; Manager of Treasury Sales & Services Unit in United Saudi Bank in Riyadh; Senior Corporate Relationship Manager in Saudi American Bank, Riyadh; Senior Dealer in Saudi American Bank in Riyadh and Computer Engineer for SAMBA Data Center in Saudi American Bank. He is currently Chief Executive Officer of Deutsche Gulf Finance.

Dr. Bassem Ibrahim Awadallah (Member): Dr. Awadallah, Jordanian country wide, holds Ph.D. And M.Sc. Degrees in Economics from the London School of Economics and Political Science inside the United Kingdom (1985 and 1988) and a Bachelor of Science in Foreign Service degree from Georgetown University in the United States of America (1984). Dr.

Awadallah labored within the investment banking field inside the United Kingdom from 1986 to 1991. He then held a succession of positions in Jordan: as Economic Secretary to the Prime Minister of Jordan (1992-1996); Economic Advisor to the Prime Minister of Jordan(1996-1999); Director of the Economic Department on the Royal Hashemite Court (1999- 2001); Minister of Planning and International Cooperation of Jordan (October 2001-February 2005); Minister of Finance of Jordan (April 2005-June 2005); Director of the Office of His Majesty King Abdullah II of Jordan (April 2006-November 2007) and as Chief of the Royal Hashemite Court, Jordan (November 2007-September 2008). Dr. Awadallah turned into chosen as a Lee Kuan Yew Fellow and a Young Global Leader, by way of the World Economic Forum in 2005 and is the recipient of the Al Hussein Medal for Distinguished Service, the Al Kawkab Decoration of the First Order of the Hashemite Kingdom of Jordan and the Al Istiqlal Decoration of the First Order of the Hashemite Kingdom of Jordan. In addition he has been offered a number of excessive decorations from several nations in Europe and Asia. Dr.

Awadallah is currently the Chief Executive Officer of Tomoh Advisory, a financial and strategic advisory practice based in Dubai, UAE. Mr. Mohyedin Saleh Kamel (Member): Mr. Mohyedin, Saudi Arabian countrywide, studied economics on the University of San Francisco, USA.

He is a distinguished Saudi businessman with many years’ experience, presently serving as Deputy Chief Executive Officer of Dallah Al Baraka Holding Company and Deputy Chief Executive Officer for Projects at Arab Media Company (AMC). Mr. Mohyedin Kamel also serves on the forums of many other agencies and institutions, such as the following: Chairman of the Board of Directors of Al Rabie Saudi Foods Co. Ltd. And of Dallah Media Production Company; Managing Director of Sports Events International Company and member of the Board of Directors of: Dallah Real Estate Consulting Company — Egypt; Almaza Real Estate Development Company Egypt; Arab Company for Real Estate and Tourism Investment ” Egypt; Arab Radio and Television Network (ART); Arab Digital Distribution Company; Arab Media Company; Arab Advertising and Distribution Company; Jordan Media City; Jabal Omar Development Company and Halawani Brothers; and member of the Management Committee of Dallah Al Baraka Holding Co. He is also energetic within the field of public and community paintings in Saudi Arabia and became a member of the Board of Directors of Jeddah Chamber of Commerce and Industry within the beyond.

CORPORATE PROFILE BOARD OF DIRECTORS: Mr. Adnan Ahmed Yousif Chairman Mr. Tariq Mahmood Kazim Deputy Chairman Mr. Shafqaat Ahmed Chief Executive Officer Mr. Abdulrahman Shehab Director Mr.

Nadeem Amjad Khan Director Mr. Syed Tariq Hussain Director Mr. Abdul Ghaffar Fancy Director Mr. Federico Tauber Director Mr. Tariq Hamid Independent Directror Mr.

Salman Ahmed Independent Directror Mr. Imtiaz Ahmad Pervez Independent Directror Board Executive Committee (BEC): Mr. Tariq Mahmood Kazim Chairman Mr. Tariq Hamid Member Mr.

Salman Ahmed Member Mr. Abdul Ghaffar Fancy Member Mr. Nadeem Amjad Khan Member Mr. Shafqaat Ahmed Member Mr.

Muhammad Siddique Secretary of BEC HR Board Remuneration Committee (HRRC): Mr. Adnan Ahmed Yousuf Chairman Mr. Tariq Mehmood Kazim Member Mr. Abdul Ghaffar Fancy Member Mr. Federico Tauber Member Mr. Mukkarram Jafri Secretary of HRRC SHARIAH ADVISOR: Justice Khalil-Ur-Rehman Khan.

Justice Khalil-Ur-Rehman Khan is the Shariah Advisor and the Chairman of the ABPL Shariah Committee. He is a world renowned Islamic Scholar of Pakistan and has held numerous positions in numerous boards of prestigious Islamic institutions. Justice (R) Khalil-ur-Rehman has served as Chairman on the Shariah Appellate Bench of the Supreme Court of Pakistan and has been the Rector of the International Islamic University, Islamabad. In addition, he’s the previous Chief Justice of the Lahore High Court. He has also been the Chairman of the Religious Board for Mudarabas. Justice Khalil –ur- Rehman has authored the landmark judgment on Riba in 1999 on the idea of which new pressure has been provided to Islamic finance within the u .

S . A .. Mufti Abdullah Najeebul Haq Siddiqi. Mufti Abdullah Najeebul Haq Siddiqi is the Deputy Shariah Advisor for ABPL. He is related to Dar-ul-uloom, Karachi and has specialised in Islamic Fiqh and Fatawa. He graduated from Dar-ul-uloom Karachi as Aalim-e-Deen and has obtained certification in Islamic Banking Finance and Economics from the Centre for Islamic Economics.

HEAD OFFICE: Al Baraka House 162 Bangalore Town, Main Shahrah-e-Faisal Karachi, Pakistan. Branches of Al Baraka Bank (Pakistan) Limited in all around the Pakistan are divided into three main classes. I. Central area II. North vicinity III. South location I) CENTRAL REGION LAHORE BRANCHES Main Branch 95, Hali Road, Gulberg Ii, Lahore Circular Road Branch sixty four, Circular Road, Lahore DHA Branch eighty-Y, Commercial Area, Phase III, DHA Lahore DHA Y-Block Branch Plot# 173/1, Block Y, Phase III, L.C.C.H.S Lahore DHA S-Block Branch 1-S, Phase II, Commercial Area, DHA Lahore Shadman Branch 5, Race Course Road, Lahore Shadman Branch 116, Shadman Colony 1, Lahore M. M. Alam Road Branch Nagina House 91-B, M.

M. Alam Road, Gulberg III, Lahore Model Town Branch Plot #122, Bank Square Market, Model Town, Lahore Urdu Bazaar Branch Plot # 15,16/A, Kabeer Street, Urdu Bazaar, Lahore New Garden Town Branch 21- Civic Centre, Barkat Market, New Garden Town, Lahore Cavalry Ground Branch Plot# 16, Commercial Area, Cavalry Ground, Lahore McLeod Road Branch 9, McLeod Road, Lahore Allama Iqbal Town Branch 1, Gulshan Block, Main Boulevard, Allama Iqbal Town, Lahore Faisal Town Branch 806-C, Faisal Town, Lahore FAISALABAD BRANCHES Faisalabad Branch 816-Main Faisal Lane Civil Lines, Faisalabad Jaranwala Branch New Bazaar Jaranwala, District Faisalabad Chiniot Bazaar Branch 189-P, Chiniot Bazaar, Near Clock Tower, Faisalabad GUJRANWALA BRANCHES Gujranwala Branch Anwar Industries Complex, G.T. Road, Gujranwala G.T. Road Branch Adjacent To Din Plaza, Main G.T. Road Gujranwala MULTAN BRANCHES Multan Branch 76, Abdali Road, Multan Multan Branch 12- Kaswar Gardazi Road, Multan Vehari Road Branch 1-2 Mushahid Trade Centre, Vehari Road, Multan GUJRAT BRANCH Gujrat Branch Lancy Hotel, G.T.

Road Gujrat SIALKOT BRANCHES Sialkot Branch 1/1437, Paris Road, Sialkot Paris Road Branch Plot# sixteen-S, Paris Road OTHER BRANCHES Arifwala Branch forty seven-D, Thana Bazaar, Zain Palace, Arifwala Sahiwaal Branch 183-B, Sarwar Shaheed Road, Kuchery Road, Sahiwaal Bahawalpur Branch Nor Bahal Road, Bahawalpur Hafizabad Branch Vanike Chowk, Alipur Road, Hafizabad Khaniwal Branch 89/10-R, Khaniwal Vehari Branch 46-A, Block A, Karkhana Bazaar, Vehari Sargodha Branch Ground And First Floor Niazi Esquire, Club Road, Sargodha Kamonki Branch Main G.T. Road, Near Ghala Mandi, District Gujranwala Daska Branch Gujranwala Road, Tehsil Daska, District Sialkot NORTH REGION Islamabad ( 5 branches) Rawalpindi ( 4 branches) Abbottabad Mirpur, Azad Kashmir Peshawar ( 3 branches) Mansehra ( 2 branches) Wah Cantt Noshera Mardan Swabi SOUTH REGION Karachi ( 22 branches) Hyderabad ( 2 branches) Mirpurkhas Nawabshah Quetta ( 2 branches) Rahim Yar Khan Sanghar Sukkar Pishin Pubbi Badin INVESTMENT COMMITTEE. The Investment Committee (IC) is responsible because recommending consistent with the Board over Directors the investment guidelines then strategies for the control of the Funds yet control the general performance concerning the Investment Managers but vile Fiduciaries. The Board approximately Directors thru its Audit Committee video display units the overall performance approximately the IC.

The top constraint of the IC is: (a) To protect the most important belongings regarding the Fund. (b) To maximize the answer according to the unit/certificate holders. (c) To keep lifestyles like prices touching on in conformity with handling the investments of the Fund. (d) To verify the Fund’s property are prudently invested between pursuance along the Investment Management Policy. INVESTMENT COMMITTIE MEMBERS. Board Audit Committee (BAC): Mr.

Imtiaz Ahmad Pervez Chairman Mr. Abdulrahman Shehab Member Mr. Salman Ahmed Member Mr. Hanif Asharf Secretary to BAC Board Risk Committee (BRC): Mr. Tariq Hamid Chairman Mr.

Imtiaz Ahmad Pervez Member Mr. Nadeem Amjad Khan Member Mr. Syed Tariq Husain Member Mr. Federico Tuaber Member Mr. Ayyaz Ahmed Secretary to BRC KEY MANAGEMENT.

CHAPTER NO 2. PACRA ASSIGNS RATINGS TO AL BARAKA BANK (PAKISTAN) LIMITED The Pakistan Credit Rating Agency (PACRA) has assigned the long-time period and brief-term entity scores of “A” (Single A) and “A2” (A Two) respectively to Al Baraka Bank (Pakistan) Limited (Al Baraka Bank). These scores denote a low expectation of credit chance emanating from a sturdy ability for well timed fee of monetary commitment. The ratings mirror Al Baraka Bank’s association with a strong sponsoring institution – Al Baraka Banking Group (ABG). It contains the impact of wonderful synergies emanating from the recent merger in terms of common operating platform, progressed profile, and prolonged marketplace outreach. While progressing toward the integration method, the management is nicely geared to enjoy the elevated franchise thru growing a legitimate marketing strategy.

However, the management’s ability in growing a profitable enterprise circulate inside the mediumterm at the same time as correctly restraining the high price shape remains to be visible. The efficacy of the hazard control framework geared toward improving the general asset high-quality of the bank additionally stays essential. About the bank: Al Baraka Bank (Pakistan) Limited (formerly Emirates Global Islamic Bank Limited) taking off its operations in February 2007, operates with a network of 89 branches. Al Baraka Bank is presently forty nine.6% owned by way of ABG through its subsidiary Al Baraka Islamic Bank B.S.C. – Bahrain (ABIB).

The final shareholding is specifically held by using Emirates Investment Group (EIG), UAE and Al Rajhi circle of relatives, Saudi Arabia. ABIB is within the system of growing its stake in Al Baraka Bank by way of stop-Dec10. Subsequently, a proper problem of PKR 800mln could be accomplished within 1QCY2011 to fulfill the MCR requirement of PKR 7bln as at December 2010. Al Baraka Banking Group (ABG), incorporated in the Kingdom of Bahrain, is one of the biggest Islamic banking and monetary offerings group in the global. ABG with an asset base of USD 15bln at give up-Sep10 and rated “BBB-” for longterm and “A3” for short-time period by means of Standard and Poor’s has an global network of eleven subsidiaries and a pair of representatives workplaces with over 300 branches in 13 unique nations in Asia, GCC area, middle east and Africa.

Going forward, the financial institution could have 11 member BoD comprising representatives of sponsoring businesses and three impartial directors. Mr. Shafqaat Ahmed – CEO – is a professional banker with over 4 many years of enjoy. Core Values CORE VALUES Partnership: Our shared ideals create robust bonds that form the basis of long time relationships with customers and personnel. Driven: We have the strength and perservance it will take to make an impact in our consumer’s lives and for the greater precise of the society.

Neighborly: We value and appreciate the groups we serve. Our doors are usually open; our clients continually revel in a heat-hearted, hospitable welcome and accommodating provider. Peace of thoughts: Our customers are rest assured that their financial hobbies are being controlled with the aid of us to the best moral requirements Commitment. AL BARAKA’S COMMITMENT TO ISLAMIC BANKING Al Baraka Islamic Bank and Albaraka Banking Group are absolutely devoted to broaden and sell an incorporated Islamic Financial System. Compliance with the guidelines and standards of Islamic Shariah is the core of the banking and financial sports and its philosophy.

All its banking sports are very intently regulated with the aid of a Board of Shariah Advisors based on the Head Office in Bahrain and a Shariah Advisor based in Pakistan, to make sure strict compliance with the best standards of Islamic Banking principles. PAKISTAN MANAGEMENT Board Of Directors: Mr. Adnan Ahmed Yousif, Chairman Mr. Tariq Mahmood Kazim, Deputy Chairman Mr. Shafqaat Ahmed, Chief Executive Officer Mr. Abdulrahman Shehab, Director Mr.

Nadeem Amjad Khan, Director Mr. Syed Tariq Hussain, Director Mr. Abdul Ghaffar Fancy, Director Mr. Federico Tauber, Director Mr. Tariq Hamid Mr.

Salman Ahmed Mr. Imtiaz Ahmad Pervez Board Executive Committee (BEC): Mr. Tariq Mahmood Kazim Chairman Mr. Tariq Hamid Member Mr.

Salman Ahmed Member Mr. Abdul Ghaffar Fancy Member Mr. Nadeem Amjad Khan Member Mr. Shafqaat Ahmed Member Mr.MuhammadSiddique Memon Secretary of BEC HR Board Remuneration Committee (HRRC): Mr. Adnan Ahmed Yousuf Chairman Mr.

Tariq Mehmood Kazim (ABL) Member Mr. Abdul Ghaffar Fancy (EFH) Member Mr. Federico Tauber (MAK) Member Mr. Mukkarram Jafri Secretary of HRRC Board Audit Committee (BAC): Mr. Imtiaz Ahmad Pervez Chairman Mr.

Abdulrahman Shehab Member Mr. Salman Ahmed Member Mr. Hanif Asharf Secretary to BAC Board Risk Committee (BRC): Mr. Tariq Hamid Chairman Mr.

Imtiaz Ahmad Pervez Member Mr. Nadeem Amjad Khan Member Mr. Syed Tariq Husain Member Mr. Federico Tuaber Member Mr.

Ayyaz Ahmed Secretary to BRC Shari’a Advisor: Justice (R) Khalil-ur-Rehman Khan Mufti Abdullah Najeebul Haq Siddiqi MANAGEMENT HIERARCHY DEPARTMENTS & SERVICES OPERATION DEPARTMENT It is also referred to as front office. The ABPL’s operations department has number of interrelated departments that works collectively to acquire the unique dreams and goals of the company. The ABPL has constructed hierarchical machine that Operation branch perform functions relating to Clearance Settlement establishing of accntous amassing the bills for Government Collecting the prices on the behalf of universities and other corporation features. This department maintains client records and handles the every day monitoring of margin positions. It basically divided into those sub departments. Deposits/account branch Cash branch Clearing branch Remittances branch All these departments come beneath the operations, that is headed/ managed by way of the Manager Operations. These are are sub departments but mutually referred to as operation department. DEPOSITS DEPARTMENT CATEGORIES OF ACCOUNTS: Bank offer following sort of account to their clients. Individual bills: Individual money owed are the most not unusual non-public funding accounts. Opened with the aid of unmarried person. Joint Account: A joint account happens while two or greater than customers have one account. Theparties to a joint account are taken into consideration in regulation as they’re one character. Business debts: Business accounts can be opened by establishments, companies, partnerships, trusts and non-profit organizations. Following documents are required. TYPES OF ACCOUNTS: Deposits are amassed by way of opening account. Major kinds of money owed offered in ABPL are following:- Current Account Saving account ? Profit and loss saving account ? Khazana accont Foriegn foreign money account ? Current account ? Saving account Term Deposit Account Current Account: This form of account is payable to the patron on call for, therefore known as currentliabilities due to their nature. No income is given at this account. Minimum quantity for establishing these sorts of money owed is commonly about Rs: 1,000/-. Saving account: Saving account of two kinds is offered in ABPL P & L saving account Khazana account PLS Saving Account: The objective of saving account is to inculcate the saving habit in most people due to the fact income is paid with restoration charge of five.25%. Khazana account: It is same like PLS Saving Account with distinction that income rate is determined on monthly, quarterly, half of yearly or every year foundation in keeping with the phrases of the account. Note The fee of earnings is excessive if the time period of taking earnings is haigh e.G income price of sector can be less than the 1/2 year term account. Foreign Currency Accounts (FCAs) Foreign Currency Account in ABPL may be opened in three essential currencies of the sector,i.E., U.S. Dollars, European Euro and UK Pound Sterling. Only authorized branches of ABPL can deal in overseas currency account. The accounts can be opened both with the aid of Pakistancitizens and foreigners by advent and following different processes required for fashionable bills with one exception for foreigners that they’ll have to post a copy of their passport. Amount deposited in the overseas currency account must be in four currencies, which might be noted in advance. When the consumer will withdraw the cash,he/she can get hold of the amount inside the same overseas foreign money/earnings may also be in thesame foreign foreign money.There are two forms of foreign currency bills: Current Account Saving Account These money owed are treated within the same manner as Pak Rupee Accounts. Term Deposit Accounts In this category Fixed or Term Deposit money owed are offered via the financial institution. In these forms of money owed the deposit may be withdrawn after a targeted time frame. Since the amount in these varieties of money owed is deposited for a hard and fast period so the financial institution can without difficulty make investments them in any profitable pastime and may get go back due to the fact there may be no burden of withdrawal through the customer. OPENING OF ACCOUNT Following is the technique to open an account Requirements for Opening an Account: At the time of beginning an account the customer must have following characteristics: Must be an adult/grownup guardian. Must no longer be bewared below any regulation from getting into any settlement. Should be recognised to the any of the banking personnel in line with KYC policy. Account Opening Procedure: The following manner is observed for opening of all of the accounts. Filling of the software form. Signing the specimen card/SS Card. Submission of right felony documents. Allotment of account range. Issuing of test ebook. Method of Judging the Fraud: The authentic CNIC card is checked. For extra confirmation,after scanning the photocopy of CNIC replica it’s far mailed to headoffice. Head workplace sends back the verysis after confirming it from NADRA Face is matched with the photo on the ID card. Expiry of the CNIC is also checked. The signature of the patron is checked. In case if client is illiterate then his image is connected and thumbs expression is given. After the account is opened a letter of thank you is issued to the client. Purpose of sending letter of thank you: The purpose is verification of cope with If the customer had given the wrong address the letter will come returned and the account is marked as doubtful. TYPES OF ENTITIES: Bank provide account of following types to these entities. Individual account ? Businessman ? Salaried man or woman ? Student ? Minor ? House wife ? Photo account Joint account Sole proprietorship Partnership Public /personal Ltd. Company Trust/membership/society Others DOCUMENTS REQUIRED The following documents are required from the unique kind of customers.It is crucial to say that documents are demanded from customers so as to ensure the source of income of respected entity. Types of documents Two types of documents are demanded from respected entity. Business documents Personal documents HOW TO CLOSE AN ACCOUNT Procedure for closing an account: The consumer can near the account. The purchaser is required to publish an application for final the account. Then the account is closed out and his balance is paid to him after deducting the Closing fees Rs. 232 and the software is filed in Account remaining file. Internal circular is circulated inside the entire department for checking if any liability arises. If any legal responsibility existed then account can’t be closed. Cheque ebook is returned lower back to bank and the officer cancel and the final cheques in cheque e book by marking the stamp VOID. And all different facilities if the purchaser changed into taking from the customers are surrendered. The range of checks in the checkbook back is also jot down inside the account last shape. After deducting the account closing charges and bringing the stability of account being closed to zero the statements of all the years are revealed out. Acoount remaining shape is attachd with account opeing shape of relevevnt account and the account apening shape is mar I used to learn the way my teacher continues the report of check book being issued to client and final cheque books in hand. General Rules for Various Types of Accounts Following are some wellknown regulations, which are relevant to all sorts of money owed: Not multiple account of each class may be opened in a single and the same branch besides joint account with every other person. In the event of the demise of an account holder the credit score balance within the account shall be paid to the legal heirs of the account holder. The account holder needs to close the account need to surrender all unused checks. In case of teenybopper account, whilst minor emerge as predominant then it’s far duty of bank to close its minor account and open easy account If someone is agriculturist then he is required to put up FARD Any professional is required to post the proof of hie professionalism for example Doctor is required to put up MBBA certificate or appointment letter If a few one for example exertions does no longer have any strong evidence or proof of his incomes then he’s required to post application having request of beginning account CASH DEPARTMENT The Major characteristic of this device is Receipts & bills to the customers, on behalf in their account, through Cheque or some other negotiable units.The coins machine particularly encompasses following areas: Receipts Payments Receipts: The Account holder deposits of their bills through a deposit slip. The deposit slip consists of the account quantity and the name of account. The quantity in discern and phrases is also written on each aspect of the slip. The purchaser then deposits the quantity to the cashier, that is dully signed via the cashier and an officer .At remaining quantity is deposited in clients account. Payments: Kinds of checks: Cross cheques Ordinary cheques CLEARING DEPARTMENT The characteristic of this department is getting charge of test, demand draft, paymentorder, telegraphic transfer, mail transfer or dividends warrants deposited by using the customer of the department and different department of the same bank. SBP acts as a clearing residence. Clearing House In Pakistan, State financial institution of Pakistan acts as Clearing House to settle the claims of the different banks through their representatives and this feature turned into earlier achieved via the National Bank of Pakistan wherein there is no department of SBP but now National Institutional Facilitation Technologies (NIFT) is performing the feature of Clearing House for all the Banks together with ABPL. Clearing Procedure The following system is fulfilled for clearing objects. All devices for series (check, drafts, pay orders, and so on) acquired for clearing tobe deposited by way of the clients are be entered at the bank’s wellknown pay-in slip alongwith all the information, especially the financial institution call/code and the report number. The clearing official of the bank affixes the financial institution’s crossing and clearing stampsalong along with his/her signature. All these units are looked after and published in the system. The next day they may be offered for clearing in NIFT. In case there is no objection the clients account is credited.For dishonored tool the best is charged from the client REMITTANCES DEPARTMENT The function of the remittance branch is the switch of cash/price range from onebank/branch to the alternative. Modes/Instruments of Remittance The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer moneyfrom one place to any part of the u . S . A . And outside the usa. The money is remitted primarily through: Demand Draft (DD) Pay Order (PO) Mail Transfer (MT)/Telegraphic Transfer (TT) Outward Bills for Collection (OBC) Inward Bills for Collection (IBC) Demand Draft (DD) A demand draft is an order tool issued for payment of a sure amount of cash tothe order of certain character and drawn on one workplace of the bank by some other workplace.It is made by using the banks in opposition to fee of cash. The financial institution recovers exclusive varieties of costs from the applicant on issuance of DD, protecting its fee and different postal fees. Pay Order (PO) It is a check drawn by a financial institution on itself. The price orders are usually issued for thepayment with inside the town wherein fee thru checks isn’t viable. The bank chargesfixed commission for clearing this instrument. Mail Transfer/Telegraphic Transfer These are the quicker approaches to switch cash. The following processes are fulfilled in thisregard:- Check the take a look at numbers at the advent Verify the signatures of the bank respectable. Entered in the applicable register. Make price. In Telegraphic switch the precise codes are exchanged by means of the bank authentic ontelephone but that is usually now not accompanied. Outward Bills for Collection Bills sent to other towns’ banks for clearing are called outward bills for collection. Checks are entered in the OBC check in, the wide variety is written and clearing stamp is affixed in conjunction with the test quantity entry. The OBC advice is prepared. The respective checks are attached with the advice. This is despatched to the relevant metropolis. Upon clearing that financial institution credit the financial institution account and offers advice to the bank. Inward Bills for Collection Bills acquired from different banks out of metropolis for the local clearing are called inward billsfor series. The bank acquired the clearing advice along side the take a look at/draft. The exams/drafts are recorded in the inward mail and entered inside the IBC register. The checks are lodged for clearing. After realization the advice is mailed to the branch and its account is credited. Foreign Remittances To facilitate its customers in the place of Home Remittances ABPL has taken a number of measures to Increase home remittances thru the banking gadget and Meet the SBP directives/commands for timely and set off transport of remittances to the beneficiaries. CREDIT DEPARTMENT Credit branch offers with funded and non funded facility. In different phrases it can be stated that it covers with each long-term and short- time period requirements. Murabha, Istasna and Salam meet working capital desires whereas Ijarah and Diminishing Musharakh fulfill long-term financing necessities for plant and machinery. As an Islamic Bank the Credit branch of ABPLprovides the products to the clients now not cash like Conventional Banks which makes the transaction Halal in step with the Islam. Credit is split into the following Categories: ? Funded ? Non-Funded Funded Murabaha Ijarah DiminishingMusharaka Non-Funded Letter of credit (LC) Letter of Guarantee (LG) Murabaha “The Murabaha transaction turned into common within the day of Prophet .” Islamic banks therefore use a sale-based transaction (Murabaha) as opposed to loan-primarily based transactions for financing buy of belongings by means of their customers. Over 70% of all advances made by using Islamic banks incorporates of Murabaha transactions. Murabaha is a particular sort of sale Islam prohibits charging hobby on money, however allows charging earnings on sale of products Where the transaction is achieved on a “cost plus income” foundation i.E. The seller discloses the cost to the purchaser and provides a positive profit to it to arrive at the very last selling fee The distinguishing feature of Murabaha from normal sale is: the vendor discloses the value to the client and a recognized income is introduced. Prohibition of: Major Uncertainty (Gharar) and Sale of Debt Subject remember of sales ought to conform to shariah policies: Be in existence, Possession by vendor both physically or positive. Valid Sale A legitimate sale settlement exhibits two functions: Knowledge; i.E. Parties’ full expertise of the item of sale. Existence; a concrete sale object Absence of those functions introduces Gharar in the transaction. Payment of Murabaha The income may be added: On a lump sum basis & as a percent of price Payment of Murabaha charge can be At spot In installments In lump sum after a sure time Hence, Murabaha does not necessarily suggest the concept of deferred price. Basic guidelines for Murabaha financing: The following are four simple guidelines for the implementation of Murabha settlement according to Islam, Asset to be offered have to exist. Sale price have to be determined. Sale have to be unconditional. Assets to be bought: must now not be used for un-Islamic purpose, must be in possession of the vendor at the time of sale, and have to be in bodily or constructive ownership of the seller. Quranic view on Gambling & Risk “O believers! Intoxicants and playing and Al Ansab (Animals sacrificed for idols) and Al Azlam (arrows for looking for success or choice) are an abomination of Satan’s handiwork. So keep away from them in order that you will be a hit. Satan needs handiest to excite enmity and hatred between you with intoxicants and playing and restrict you from the remembrance of Allah and from prayer. So, will you no longer then abstain?” (Al Maidah 90 ) Ahadith on Gambling & Risk “Whoever buys nutrition permit him not sell it until he has possession of them”. (Bukhari) “Do no longer purchase fish within the sea, for it’s far Gharar”. (Bukhari) “He who purchases food shall not sell it till he weighs it”. (Muslim) “The Prophet forbade the sale of grapes till they end up black and the sale of grain until it’s far strong.” (Bukhari, Muslim, Abu Dawood, Tirmidhi) Types of Murabaha Murabaha sale is split into two kinds: Ordinary Murabaha sale: There are two parties to it, the vendor and the consumer. The dealer is an normal trader who buys a commodity with out relying on a previous promise of purchase, and then he displays it for Murabaha sale for a charge and a profit to be agreed upon. Murabaha sale related with a promise: There are three parties to it. The seller, the client and the bank as an middleman dealer between the buyer and the seller. The financial institution here does no longer purchase until the purchaser specifies his desire and a prior extremely good promise to buy. The mode of Murabaha sale linked to a promise is utilized by the Islamic banks which adopt the acquisition of commodities according to the specs asked through the client and then resell them on Murabaha to the one who promised to buy for its fee fee plus a pre-agreed profit. There are distinct paperwork to the utility of Murabaha sale related to a promise of buy. Some of those paperwork are determined by using whether the promise is binding or now not. Other forms are decided through how the bank gets the commodity inside the case of the primary sale. The bank may additionally acquire the commodity immediately or through certainly one of its dealers or it is able to authorize the purchaser to acquire the commodity. Features: Flexible compensation terms Competitive pricing Fixed/Reducing balance foundation Minimum Murabaha finance: USD 50,000/- Variable tenors Procedure of Murabaha Financing in AlBaraka Islamic Bank The realistic steps of the Murabaha sale The client determines his needs: The purchaser: Determines the specifications of the commodity he wishes and requests the seller to decide the price. The dealer: Sends a quotation legitimate for a sure duration. Signing a promise to purchase agreement The customer: Promises to shop for the commodity from the financial institution on Murabaha sale for the price of the commodity plus the agreed upon earnings. The bank: Studies the request and determines the situation and securities for approval. The first sale contract The bank: notifies the client of its approval to buy the commodity. The financial institution might also pay the fee at once or as per the settlement. The supplier: Expresses his approval to the sale and sends the invoice Delivery and receipt of the commodity The financial institution: authorizes the beneficiary to acquire the commodity. The supplier: sends the commodity to the vicinity of shipping agreed upon. The consumer: undertakes the receipt of the commodity in his capability as legal consultant and notifies the financial institution of the execution of the proxy. The Murabaha sale settlement The events (the bank and the consumer) sign the Murabaha sale agreement in line with the settlement of the promise to buy. Areas of programs Murabaha is one of the most widely used modes of financing via the Islamic banks. It is appropriate for partial financing of funding by clients operating in enterprise or exchange. It allows the purchaser /investor to buy finished items, uncooked fabric, machines or system from the local market or via import. Documentation There are some of files concerned in a Murabaha financing transaction. The following files are required for the approval of credit score. Credit Application CIB Other Bank Opinion Spread Last Three Years Financials Borrowers Basic Facts Sheets (BBFS) Request Letter (RL) Call Report Risk Rating Transactional documents for Murabha are as follow: Purchase Agreement Agency Agreement. Possession Report. Description of assets Report. Demand Promissory Note. Provisional Transactional Note. Bill Cheque / DD/ PO The following are the other price documents, Personal Guarantee Demand Promissory Note (for total) GFCA Statement of Lien Statement of Set off Import Murabaha LC opened and sooner or later financed by using ABPLis a really perfect example of a direct fee Murabaha. The customer opens the LC from ABPLas an agent of the Bank (i.E. Locations order with the foreign provider on behalf of AlBaraka Islamic Bank. Upon receipt of documents ABPLmakes charge to the foreign supplier. ABPLsells the goods to the patron on Murabha (i.E. Price plus profit basis) Application of Murabaha in ABPL ABPLand the client signal agreement to Sell & Purchase along side Agency Agreement. Customer makes a written request to the Bank for the purchase of Raw Cotton. ABPLdisburses finances amounting to Rs.10 Million to the agent (usually the purchaser) under Agency Agreement. Agent/Customer purchases and takes possession of the cotton on behalf of AlBaraka Islamic Bank. Agent/Customer informs ABPLthat it has bought cotton of Rs.10 Million and has additionally taken its shipping/possession at the bank’s behalf. The Agent then makes an offer to buy it at Rs. 15 Million to be paid after 12 months with the aid of signing the Declaration and submits Murabaha purchase evidence inside the form of an bill, bill or a few different documentary evidence. ABPLsells the goods to the purchaser on Murabha (i.E. Value plus earnings basis). FOREING TRADE DEPARTMENT Note: This is all about what foreign exchange branch does. I did work on best import. Export: There are following three basic modes of export: Export on Collection Basis Export on Advance Payment Export by way of Negotiation Collection: Exporter comes to the financial institution to trouble E-FORM for cargo. Shipment goes first then foreign bank sends cash to the exporter’s bank. All the threat bear by exporter series base export in. Advance Payment: Foreign bank sends cash to the exporter at the account of export develop price. Exporters financial institution gets the charge and asks the exporter to offer the reason of this charge. Get the “Advance Payment Voucher” signed with the aid of the exporter and finally recognize the fee. Negotiation: Exporter comes to the financial institution and submits the delivery files along side LC (letter Of Credit) exporter bank acquired the documents with LC. Checks the documents with LC, take indemnity or guarantee from the exporter and after approving from the department manager and head workplace, gives price of the documents to the exporter. In different phrases negotiation approach payment of documents in export by means of the financial institution to the beneficiary (exporter). FOLLOWING BODIES MAKES THE ROLES AND REGULATIONS ABOUT LC State bank manual: State financial institution foreign exchange guide 2002 states the jobs and policies which guide how the transaction could be completed across the border. International Chamber of Commerce: International chamber of trade make a set of guidelines about Liberalization; Energy; IT, E-Commerce and Telecommunications; Transport, Shipping and Logistics; IPR and Copyright, and Arbitration. ISBP 2002: The widely acclaimed International Standard Banking Practice (ISBP) for the Examination of Documents underneath Documentary Credits become selected in 2007 through the ICCs Banking Commission. First introduced in 2002, the ISBP consists of a list of recommendations that an examiner wishes to check the documents supplied under the Letter of Credit. Its predominant objective is to lessen the range of documentary credits rejected by using banks. UCPDC GUIDELINES: Uniform Customs and Practice for Documentary Credit (UCPDC) is a set of predefined rules hooked up by the International Chamber of Commerce (ICC) on Letters of Credit. The UCPDC is utilized by bankers and business events in more than two hundred countries including India to facilitate exchange and price via LC.UCPDC became first posted in 1933 and ultimately updating it for the duration of the years. In 1994, UCPDC 500 turned into launched with only 7 chapters containing in all forty nine articles. The modern-day revision became approved via the Banking Commission of the ICC at its assembly in Paris on 25 October 2006. This modern day version, referred to as the UCPDC600, officially commenced on 1 July 2007. It incorporates a total of about 39 articles masking the following regions, which can be categorised as eight sections in line with their capabilities and operational procedures. I.C.C. Rules for Foreign Trade: URC 522 stands for Uniform Rules for Collection. Foreign Trade performed all over the international in line with the regulations and regulations of URC 522. UCP600 (Uniform Custom Practices six hundred VERSION) while all the parties observe UCP600 regulations and regulations in foreign change. Terms of contract/sale: In negotiating a contract, an exporter should decide who’s to meet the numerous expenses as they’re incurred. The greater commonplace phrases of settlement are: CIF C & F FOB CIF (value, insurance, freight): It method that the price will encompass all of the cost of products, coverage and freight incurred till the goods are delivered on the port or airport of vacation spot named within the settlement. Essential documents are: Commercial invoice. Insurance policy or certificate. A complete set of bills of lading marked “Freight Paid” evidencing that the products were shipped on board the carrying vessel, or opportunity documents of title to the products. C & F (cost and freight): It method that the rate will consist of the value of products and freight paid in connection with the delivery of goods on board the carrying vessel for unloading on the port or airport of vacation spot named inside the contract. Documents needed are: Commercial bill. A complete set of bills of lading evidencing that the products have been shipped on board the sporting vessel and declaring that freight has been paid by means of the exporter. FOB (free on board): It approach that the exporter has handiest organized the distance and shipped the products without charge of freight. Thus the freight costs are to be paid by the consignee on the port or airport of vacation spot. IMPORT There are 3 types of import: Letter of credit score Firm’s settlement Advance charge LC (Letter of credit score): It means assure to pay by way of the issuing Bank if either of the events (importer or exporter) defaults/not able to pay at sight (at once /arrival of documents) or at fee in due date in acceptance. Advance charge: In strengthen payment method the exporter is relied on to ship the products after receiving charge from the importer. Cash earlier before shipment can also appear to be the maximum acceptable technique of all, for the reason that shipper is relieved of collection troubles and has instantaneous use of the money if a cord transfer is used. Payment by way of test, even earlier than cargo, might also result in a set postpone of 4 to 6 weeks and therefore frustrate the authentic purpose of price earlier than cargo. On the alternative hand, enhance payment creates cash go with the flow troubles and will increase dangers for the purchaser. Thus, coins in advance lacks competitiveness; the consumer may also refuse to pay until the merchandise is acquired. Advance Payment LC Contract REMITTANCES Remittances are of types: Inward Remittance. Outward Remittance. Inward Remittance: The Bank obtain inward message thru SWIFT for credit to the beneficiary account being maintained both in Pak rupees or FC account. In case of Pak rupees account referred to inside the SWIFT Message. The receiving bank converts the FC account into Pak rupees by using making use of TT Buying Rate of the value date of that day. Remittance Outward: Until and except special approval /permission have being granted by means of SBP. The FC quantity can be duly remitted via FC account only by using depositing FC cash. IJARAH Ijarah method “to give some thing on lease.” It is a long time financing agreement” Mode of Financing The chosen mode of financing will be the Ijarah settlement, wherein the Bank acquires an asset (plant & equipment, vehicle) and the rents it to the client for an agreed duration. Car Ijarah in ABPL A hire arrangement is performed between the AIB and applicant (client), where the Bank will provide an asset (car) after the mutual settlement to the term laid down the Ijarah agreement. The client is of the same opinion to a monthly price (hire) to the Bank to be used of the automobile. At the finishing touch of the agreed length, the Bank offers the client an choice to buy the asset (vehicle). The following table info a number of the macro-features of the applicable mode of financing: Parameters Detail Role of ABPL To purchase a automobile and hire it to a purchaser under an Ijarah agreement. Ownership (Title) Ownership lays with ABPL Financing Limit There is no restriction for brand new automobile’s purchase Periodicity Pre-decided monthly leases. Period of facility 3 years to five years. Mode of charge Through submit dated cheques or direct debit instructions. Purchase option to the client At the cease of the Ijarah settlement period, AIB will make a suggestion to the purchaser to buy the asset at a pre-determined price. Documentation of Ijarah There are a number of files involved in an Ijarah financing transaction. The following documents are required for the approval of credit. Credit Application CIB Other Bank Opinion Spread Last Three Years Financials Borrowers Basic Facts Sheets (BBFS) Request Letter (RL) Call Report Risk Rating Transactional documents for Ijarah are as follow: Purchase Agreement Agency Agreement. Possession Report. Description of belongings Report. Demand Promissory Note. Provisional Transactional Note. Bill Cheque / DD/ PO The following are the alternative fee documents, Personal Guarantee Demand Promissory Note (for total) GFCA Statement of Lien Statement of Set off Diminishing Musharaka Musharaka is a settlement wherein the bank and a client agree to mix their monetary sources for the status quo or walking of a enterprise or challenge, or for challenge any type of commercial enterprise activities. The two parties conform to manipulate the project in accordance with the phrases of the agreement. The profit or loss might be apportioned among the parties pro charge their participation inside the invested capital. Unlike the sharing of loss, the sharing of profit may be or may be not seasoned rata the proportion of the parties within the capital, depending on the extra paintings or duties that both of the 2 events might also shoulder. In a Diminishing Musharaka the banks percentage decreases regularly as a result of a slow sale of its shares to the customer in opposition to the price of installments. The bank makes income via promoting the proportion at a rate that’s better than its unique value. TYPES OF SECURITIES The phrase security approach any issue given to defend or shield the repayment of an strengthen and to justify this time period the issue so given need to itself be secure; in any other case the object for which it’s miles given is defeated. The ABPLusually takes 3 varieties of securities from its clients just for the sack to relaxed its purchaser’s deposits. These sorts are: – Pledge Hypothecation Mortgage In every case the financial institution does not end up the proprietor of the, property however the bank has only the proper over the property until the borrower makes payment of his debt. Pledge: In a pledge, the possession of the assets however not the possession passes to the creditor. The pledgee is entitled to the exceptional possession of the property until the debt is repaid but the ownership stays in the pledgor issue to the pledgee’s right. Hypothecation: In case of hypothecation, the belongings in items is charged as protection for a loan from the bank. But the ownership and ownership is left with the borrower. In case of hypothecation, neither the property in goods and nor the possession of assets skip to financial institution, but simplest the security is granted in a form of letter of hypothecation, which typically offers the banker” price on the hypothecated goods. Mortgage: In a loan, the belongings within the issue loan is conveyed to the mortgagee conditionally. The ownership, until default in repaying the loan, usually, stays within the original proprietor situation to the mortgagee’s rights. NON FUNDED FACILITIES Letter of Guarantee ABPL issues all forms of monetary units inclusive of financial institution letters of assure in accordance with the provisions of Islamic Sharia. The bank troubles distinct forms of letters of assure which include bid bonds, performance bonds, strengthen price ensures, retention bonds, preservation bonds and customs ensures. Issuance of Letters of Guarantee The financial institution problems all varieties of letters of guarantee related to exchange finance, production and projects in addition to all other economic ensures which cover all types of liabilities of the applicant. The financial institution issues letters of guarantee for unique functions consisting of guaranteeing the performance of positive jobs or criminal obligations. The financial institution may additionally request the consumer to deposit a positive amount of cash as a margin to secure the sort of facility. The Bank prices charges for the services that it gives if the letter of assure is cash blanketed; in any other case, the financial institution takes a fee that covers the real value for the issuance of the letter of guarantee. Letters of Credit The Bank affords to its clients short-time period centers to finance their alternate activities. Such facilities may be used to finance the sale, purchase, import or export of products, machinery or raw materials and spare parts etc. Documentary Letters of Credit in opposition to Cash Margin: The consumer requests the bank to open a letter of credit score in line with certain situations (the phrases of the consumer’s authentic deal with the dealer). The financial institution requests the customer to deposit a amount of money to a most equal to the price of the products to be purchased or imported, to cover the quantity of the letter of credit. Based on this, the bank opens the letter of credit score. The settlement of the letter of credit is effected via making use of the quantity of the margin deposited through the customer. The documents received beneath the letter of credit are then sent to the customer. The bank prices expenses for its offerings. MY AREA OF INTERNSHIP I did my internship in banking sector, AlBaraka Bank Pakistan Ltd. , Gujranwala department located at Anwar Industrial Complex, G.T Road. ABPL is operating in Pakistan as a foreign bank because 1991; in Gujranwala it begins its paintings from 31st December, 2007. This department inside a quick time gets higher function in market. During my internship I were given the opportunity to work in distinctive departments like OPERATIONS DEPARTMENT CREDIT DEPARTMENT FOREIGN TRADE DEPARTMENT I learnt lots about the sensible work of various departments below the supervision of the department managers. I become given complete authority to do obligations so I gained a lot by way of the want of sure people at financial institution. Although I labored in some of these departments but I won most from overseas change branch due to the manager of the department due to the fact he changed into very cooperative and adept in his paintings. And I also provide the credit score to the department manager who offers me freedom to move all the departments for getting to know. WORK DONE BY Me As I even have cited earlier that it’s miles mendatory for the scholars of masters of commerce to sign up for internship during six weeks. The cause is to study the matters almost. To fulfill this requirement I choosed the banking area. As i studied the concern of Islamic banking in my 2d semester so I changed into curious to recognize the actual operating of Islamic banking. I turned into fully bold to learn most on this short spam of time. To attain my ambition I choosed the Islamic bank AL BARAKA ISLAMIC BANK PKISTAN LIMITED (ABPL) Gujranwala branch situated at Anwar Industries Complex, G.T Road. I sense it necessary to explain that the supervisor of department and the credit and advertising and marketing department were too much cooperative and assisting. It made workme experience confident and I become capable of paintings in all the departments freely. During my internship department supervisor pass for UMRA and the credit score & advertising supervisor worked in location of him he changed into an excessive amount of co-operative and prompted us to study as a great deal as you may and assured us for any kind of help if needed. He additionally assured us for any kind of assist wished for education of document. During my internship I labored in 3 departments Foreign exchange department Credit department Operations branch WORK DONE BY ME First week At first day I become very passionate as after giving my remaining semester I became going to last step of my masters of trade. Now it became time of practically viewing the working of an organization. During my internship I came to recognize that there is a large distinction in actual working and bookish knowledge. I spend my first week in foreign change department. Here Mr. ASAD MEER guided us as he is foreign change manager on this branch. He shared us his views about the need of the establishment of this branch. In this department I became capable of recognize about the activities worried for import and export inside the overseas change branch. In this branch I keenly discovered all of the documents concerned in import. I additionally asked the that means of some technical terms discovered in those files and there reason. He informed us the whole method of import in element. We did no longer study an excessive amount of approximately export as he stated that the manner of export is precisely opposite to the system opf import. Mr ASAD MEER additionally informed us the regulating laws of overseas change which might be observed durion the complete manner of import. I also viewed the registers wherein entries are made. 1st day of 1st week FOREIGN TRADE DEPARTMENT First thing I discovered turned into letter of credit score, and then I considered import and export documents. LETTER OF CREDIT: Letter of credit is the assure given through the importer financial institution to the exporter bank that if the importer fails to pay the cash, the importer financial institution also referred to as Applicant’s financial institution pay on his behalf. TYPES OF L/C: There are numerous methods for making payment of an import or export transaction. These are listed below: Irrecoverable Letter Of Credit The issuing bank (importer’s bank) gives an enduring mission to simply accept and pay payments drawn upon it, to the exporter, upon pleasurable the terms and conditions stipulated in the Letter of Credit (LC). It gives complete protection to the exporter. Recoverable Letter of Credit The issuing financial institution (importer’s financial institution) can modify the LC with none responsibility on its element. These are usually not well-known by way of the exporters. LC at sight When exporter ships goods and gift files of cargo in its financial institution, exporter sends those files to importer’s financial institution. Importer has to make charge inside five operating days. In case of default, foreign financial institution can claim markup. This is referred to as LC at sight. Second day of 1st week 2d day we ask Mr. ASAD MEER about the closing types of LC. He became tolding us in very specified manner. The final types of LC are: LCDA It is provider credit LC. It enables importer. Payment is made at predefined destiny date which can be 30, 60, 90 days. Goods are introduced before fee. Acceptance arrangement is made b importer’s financial institution. Deferred charge LC It is much like LCDA but no reputation is concerned. Importer financial institution sends agenda to exporter bank of deferred price according to levels defined. Pre defined date isn’t given as manufacturing may be finished earlier. Transferable LC In transferrable LC, exporter can transfer full LC or part of it. Non-Transferable LC In this kind, LC cannot be transferred to every other party. Confirmed Letter of Credit This kind of LC has the protection of the credit score status of the importer’s as nicely exporter’s banks. The exporter’s bank which confirms this LC, takes full duty of making payment if the importer’s bank fails to achieve this. Unconfirmed Letter of Credit Though the issuing bank offers a commitment to honor the drafts, however, it does now not provide any guarantee. From the exporter’s factor of view showed irrecoverable LC is the first-rate form of receiving fee. Third day of 1st week As there are so many forms of LC it was a new thing 4 me so I became feeling it hard to digest them without difficulty so the involved manager recommended us to revise the paintings of preceding 2 days. So In my 3rd day of internship I revised the preceding 2 days paintings and found out approximately some different styles of LC briefly. Some other kinds are: Freely negotiable LC Clean LC Special LC Red clause LC Green clause LC Documentary LC Fixed LC Revolving LC Back to Back LC Other modes like L/C L/C transfers same danger to parties concerned that’s why it is taken into consideration favorable as compare to others. Open account: In this mode, major threat is of exporter. As he sends goods earlier than receiving charge, importer may additionally or may not make charge. No bank is involved in this transaction. Payment is made surely thru debts of companies. Import contracts: It is similar to L/C. Transaction is devoted between importer and exporter. Importer submits import contract to bank much like Performa bill. Security of supplier is much less as evaluate to L/C. Importer’s bank does now not give any attractiveness, payment is best made while importer makes price. A certificates is issued by using the importer named registration of certificates. It is for safety of provider. Advance payment: Importer makes payment in advance. Major danger is of importer, as exporter may additionally or won’t send goods, or he may additionally ship incorrect goods. To keep away from any discrepancy due to cultural or language differences, HS-code is delivered. Formerly ITC changed into implemented. Communication device In ancient instances L/C turned into used to send thru Letter head of business. Then it became used to ship via “Telex”. It is similar to typing device. More dependable system of communique is “SWIFT”. L/C confirmation It is needed in case of any trouble which can be political or within your means. If L/C isn’t always being used by a famend bank, beneficiary financial institution may ask for confirmation from famend bank. Security is given by way of each of the banks. Confirmation fees are charged by means of confirming financial institution. Upon affirmation, L/C can be widespread Codes utilized by SWIFT: 707- Amendment 103- Funds transfer 202- Bank to financial institution charge seven hundred- Credit problem Modes of shipment Shipment is made mainly via sea as it is cost effective as examine to other shipments. Modes of shipments are as follows: Shipment thru sea Shipment through air Shipment through avenue Shipment via rail Shipment thru truck and so on. Documents of shipment Bill of lading is prepared in case cargo is made via sea. This bill is ready via reserving officer or agent or captain of ship. Usually 4 copies are organized every for exporter, importer, importer’s financial institution, captain. Air way invoice is prepared in case cargo is made through air. If cargo is made via truck, truck receipt is ready. 4th day of 1st week In 4th day of my internship I requested them the payment methods he told us that there are many modes of payments that are presented to customers according to the wishes of customers. MODES OF PAYMENT There are 4 modes payments which can be as follows: Deferred Credit Sight Credit Acceptance Credit Negotiation Credit Deferred Credit The draft is issued by way of the importer and offered to the financial institution by way of the exporter along side documents (bill of loading, bill, and insurance). The price is made by using the financial institution on maturity of draft. Sight Credit The draft is issued by means of the importer and provided to the financial institution by way of the exporter together with documents (bill of loading, bill, and coverage). The charge is made by the bank if it finds the files accurate. Acceptance Credit Bank confirmed that file has been acquired and payment would be made inside positive term. Negotiation Credit The issued L/C can bargain at any bank and were given the quantity money that he required against L/C issued with the aid of the financial institution. SHIPPING GUARANTEE In case files are not acquired through the importer and items had been reached on the port. Authorities inform the importer to get goods immediately. Importer can also request importer’s bank to problem shipping guarantee. Bank guarantees at his request and ensures that documents could be presented while received. It is called shipping assure. 5th day of 1st week In 5th day of my 1st week I learned about the main files of that are asked by way of ICC and a few other rules of ICC that are implemented among entire technique of import and export. He additionally informed us approximately a few terms that are utilized in overseas exchange world. IMPORTS & EXPORTS Main file is UCP for DC in line with ICC book # six hundred. ICC is regulatory frame. Its head office is located at Paris. All international locations are its members. UCP is ready of rules to keep away from headaches & discrepancies amongst countries. Rules of ICC: URR–method uniform regulations for reimbursements URC– method uniform regulations for series URDG– means uniform rules for call for ensures These regulations are applicable across the world. Some of them are being followed in Pakistan. Foreign change rules: General policies: Foreign change guidelines Special rules: Import coverage order Export coverage order Inco terms: (global industrial terms) It is series of ICC. New series is Inco time period 2010. It defines liabilities of seller and consumer. Inco terms come with price quotations. FOB CFR/CNF/C&F CIF FAS DAF DDU FOT CPT Terms allowed in Pakistan are FOB and CFR 6th day of 1st week In my remaining day of internship at foreign alternate department I recognize some finishing methods of import and export after which I spend the last time in discussing a few different issues related to import and export. IMPORTS When the goods arrive at port or dry port, the importer will document the Bill of Entry giving the detail of imports, Value of imports, Rate of responsibility & Tariff. Customs appraisal officer will perform an assessment of products in step with the policies/tariff guide. Depending upon the evaluation following taxes will be remitted via the importer: Custom responsibility based totally upon ad valorem, specific fee or each. Sales tax – 15% of ad valorem + custom duty. With-preserving tax four% of advert valorem + custom responsibility + sales tax, Regulatory responsibility as imposed by the government once in a while under the strength of customs act. EXPORTS To dispatch the cargo, the exporter will publish delivery invoice. The customs appraisal officer will observe the goods for correctness of declared description, cost, and claimed responsibility downside. Thereafter the goods may be allowed for shipping. I spend my 0.33 & fourth week of internship in Credit department. In this department I got here to realize the main cause and advantage of the established order of this branch & the necessary points which might be saved in thoughts at the same time as finding out that the credit must be granted or not. During my internship I concluded that it is the toughest branch of the bank. Here I discovered approximately the different modes of Islamic financing & approximately the facilities for which the credit score is granted keeping in view the essential points in thoughts as before granting credit extraordinary activities are finished on foundation of which it is determined that credit score need to be granted or not e.G purchaser score sheet is made which includes the charges assigned to extraordinary indicators. I also viewed the documents worried whilst appearing activities in this branch. WORK DONE IN 2ND WEEK 1st day of 2st week I spent 2nd week in credit score authorization department and 1 st day I learned approximately the files of credit, I keenly found them which raised many questions in my mind I cleared some of them a number of the ones files are as follows: Transaction record Charge record Title documents Transaction files: Murabahah: General sale and buy Ijarah: Rental based transaction is involved 2d day of second week In second day in this branch I found out about one-of-a-kind modes of Islamic financing. ISLAMIC MODES OF FINANCING: Murabahah: An agent is appointed, a document named “company agreement” is signed b the agent appointed by using the financial institution. Agent goes into the market and selects the desired items from the marketplace and informs the financial institution. Bank purchases this on behalf of customer and sell it to the purchaser, who is also agent of the financial institution. In Murabahah, cost is known to the purchaser. Profit is likewise declared to the consumer. Ijarah: Ijarah is largely condo primarily based. Car is rented out to the purchaser for particular time period which can be three, four, five years. Customer pays the lease. Ownership isn’t always transferred in this example. If client uses this even for variety of years it will not come beneath the ownership of the patron. Only rate is declared to the patron. Musharakah: It is much like partnership. Two or extra partners proportion their investment and income. Profit is sent in agreed ratio. Mudaraba: Two parties are worried in this case. One celebration invests capital in the commercial enterprise and different celebration offers offerings. Services may be associated with handling of cash to earn income for the commercial enterprise. Rab-ul-Maal is the investor Modarib is the person who offers services and manages the cash third day of 2d week At third day in this branch I found out approximately the sale based merchandise SALE BASED PRODUCTS: Salam: Order is located and charge is made in advance earlier than items are produced and delivered. Payment is made in complete best. Istisna: Production starts offevolved after placement of order and price is made whilst items are introduced. Manufacturer makes use of its very own fabric to provide items. Payment may be made in installments or in full. 4th day of 2d week In 4th day of 2d week I revised the previous 2 days paintings as te concerned supervisor was busy and I assuming it as an possibility I questioned him about previous ambiguities. Fifth day of second week In 5th day of this branch I discovered approximately the primary factors which can be stored in mind even as taking selection that credit score sould be granted or not. Credit authorization: Three operations are achieved: Identify existence of possibility Assessment of individual reputation in marketplace Valuation of individual via dealings Valuation of consumer is executed via checking tangible and intangible securities. Securities are of sorts, top safety and secondary safety. Sixth day of 2nd week In 6th day which became my closing day on this department I found out approximately the distinctive risks concerned in taking any choice associated specially associated with the credit score granting additionally found out about the documents worried for appearing the whole credit procedure. There are 3 kinds of risks: Current risk Business chance Operations chance After approval of credit score, files to be connected are: Personal guarantee This assure is given by means of any individual. In case of default in paying returned mortgage, that character wills pay the mortgage amount on behalf of customer. General financing It includes the parties of financing like customer and bank and they’re interested in what type of financing is likewise mentioned. Letter of lien It method, take the right of accounts to price. Letter of prompt This letter is for fee of stamp expenses. Sanction advice It includes statistics about sanctioning of enhance. What amount of finance is sanctioned and it will be paid. It is prepared after approval of loan and is signed with the aid of the consumer. All above documents need signature from the customer.” DORMANT ACCOUNT: In case banker do not operate his account or do not make any transaction for 6 months, his account will be blocked seemingly. Letter is sent to the client one month before blocking off account, this letter is referred to as “pre-dormant letter”. After blockading, a letter is likewise despatched to the purchaser, which is referred to as “publish-dormant letter”. If he wants to prompt his account, he desires to signal the request and carry out at least one transaction. No costs are deducted by means of the bank. He wishes to put up his CNIC replica. KNOW YOUR CUSTOMER: A transaction profile is maintained through the bank in which essential records relating to customer is protected. The records entered may be “no of possible transactions done during the month” and “overall quantity of those transactions”. Source of profits and nature of enterprise is also stated in this. If the customer has to transact greater than the defined restriction because of growth in his commercial enterprise, the bank replace “KYC”. If consumer transact extra than the described limit and does now not tell the bank, the bank might also inquire this. Customer on occasion transacts their black cash to convert it to white cash. To avoid this, idea of KYC changed into delivered. WORK DONE IN 4TH WEEK 1st day of 4th week I spent 2nd week in operation branch doing billing and remittances. Operations officer gave me a few knowledge about this stuff. Purpose of these products is to make certain secure fee. It is in desire of payee simplest. There are much less possibilities of its omit use because these can be deposited only in payee account. In case of loss, financial institution can be responsible. DEMAND DRAFTS (DD) DD is a written order given by using the department of the financial institution on behalf of the patron to different branch of the equal financial institution to pay the sure amount to the client. DD are issued for the specific vicinity aside from region of issuance. A draft is a Cheque drawn through a financial institution on its personal branch or another department of every other financial institution at a unique region asking for it to pay on demand a designated amount of money, which is already acquired, to the person named on it. DD is of following two kinds: DD payable DD Paid Suspense a/c In the primary kind as recommendation reaches for price the right away pay to the patron at the same time as in later as DD presented through the customer, it is paid and the suspense account is debited. Documentation: A published application form is furnished for filling in absolutely and signing by way of the applicant. After depositing an quantity of draft and commission of the bank, duly completed and signed by way of legal officials, then it’s miles passed over the applicant and credit score order is dispatched to drawer department. Following are the pre-requisites for the processing of DD: Bank Serial No No. Of Rs.60 Postage prices zero.02% Withholding tax second day of 4th week In second day of 4th week I learned approximately the other clearing instrument known as as pay order in detail and additionally get knowhow approximately CDR. PAY ORDER For this form of remittance the payer have to have the account in the issuing financial institution. Pay order are extra liquid as compared to cheques because cheques can be dishonored even as PO can’t be. It is written order issued with the aid of the bank drawn and payable on itself. It is used for local transfer of money from one character to another person. The public additionally uses it for depositing cash with Government or Semi Government branch. Documentation: The celebration who calls for a pay order gets a broadcast utility from the financial institution. He will fill it and deposits the amount and commission. The financial institution charges are same as on demand draft. Bank Serial No. No. Of PO Central No. 0.02% withholding tax In case DD and PO receives dormant after 6 months of problem. Dormant account needed to revalidate. Issuer have to go to drawer branch and request for revalidation, bank adjustments the date and certified signatory symptoms the record again. Credit recommendation is generated having data about organisation on which it’s far generated in the want of which enterprise. One copy is despatched to drawee branch and the opposite is sent to move workplace. CALL DEPOSIT RECEIPT: Bank has no advantage of issuing DD and PO. CDR is issued for Govt. Contracts. CDR can be issued only to account holder third day of 4th week This day I learned about different clearing contraptions referred to as Bills series. BILL COLLECTIONS Bills branch plays the following functions. Inward Bills for Collection (IBC) Outwards Bill for Collection (OBC) Inward bills for collection (IBC) These are payments or cheques and so on., which can be collected regionally. They are received from outstation branches banks and parties. If intercity clearing offerings of NIFT are not available within the place in which branch of our financial institution is placed. Cheques and DD’s are sent through IBC ; OBC. Outwards bill for series (OBC) These are bills or cheques etc., which can be despatched intercity for collection. Clean payments: These are negotiable devices, drawn on outstation branches, bills sent for series on behalf of the customers i.E. Cheques, drafts or treasury payments etc. Documentary bills: These are payments observed by files which include R.R.T.R Bills of landing and so forth. Having title to items, gathered through the bankers on behalf in their clients. 4th day of 4th week 4th day I discovered about clearing , its kinds, its documents and stamps marked in detail. CLEARING In vintage instances one consultant of every financial institution had to go to SBP each day for report of clearing. This turned into tough assignment to perform. To avoid this time taking venture, SBP made agreement with OCS and made an organization known as “NIFT”. Representative of “NIFT” collects outwards in the nighttime and provide inwards in crack of dawn. Types of clearing: Inward clearing: Checks of Al-Baraka financial institution if submitted in different banks, those banks sends the exams to Al-Baraka bank for clearing, this is known as inward clearing. Outward clearing: Cheques of other banks if submitted by client in Al-Baraka financial institution, the financial institution sends cheques to different banks for clearing, that is known as outward clearing. It is drawn by means of our financial institution on other. Local clearing: Within town clearing is called as local clearing. Same day clearing: Cheques having amount greater than Rs. One hundred,000/- may be cleared in same day clearing. Only precise branches are members of same day clearing. If cheques are objectionable, they may be lower back lower back. In this example Standard hours for NIFT service is 24 hours Inter metropolis clearing: Clearing among the cities in which NIFT presents its services i.E. Karachi, Lahore, Peshawar, Gujranwala and so forth. If cheque is cleared through intercity clearing, there will be no deduction in the quantity of cheque. Standard hours are 48. If SBP does no longer play its function in clearing then NBP is allowed to carry out this function. Instruments of clearing: cheque Pay order Demand draft Challan shape Stamps on clearing cheque: Stamp of crossing Stamp of clearing 5th ; sixth day of 4th week 5th day I turned into absent whilst sixth day I spent in clearing my ambiguities and revising the work carried out on this department. CREDIT Work performed in 5th week I spent 5th week in credit ; advertising and marketing department with Assistant vice president of the bank. Mr. Hafeez Ullah Khan in this department I got the opportunity to study how financial institution valuate their clients before lending them cash. 1st day of fifth week 1st day I spent in this department in studying its goal of mastering and life and the way a patron is captured. CREDIT ; MARKETING Main objective of this department is to pick out the events who’re interested to get loan. After figuring out them, bank investigates whether or not that party has the functionality and willingness to pay back the mortgage. I viewd the documents and information needed For this purpose. Second day of fifth week 2nd day I found out the primary objective of financial establishments and got here to recognise that it’s far very critical for an financial system. Functions of financial establishments Main capabilities of economic institutions are as follows: To extend economy To make go with the flow of price range more higher Financial machine is a device which ensures the waft of finances among demanders and suppliers of price range. It creates interface between dealer and demanders of funds. Categories to carry out lending characteristic Credit advertising and marketing Risk management Credit administration third day of 5th week This day we well began to found out the actual running of this branch. CREDIT MARKETING: Main objective of this category is the identity of customers in the market who needs credit. The fundamental position of this category is “to increase credit score portfolio for funding of cash”. RISK MANAGEMENT: In this class risk connected to credit score is managed. Main position of class is “hazard assessment of suggestion and if it fits to credit score guidelines of SBP”. CREDIT ADMINISTRATION: Main function of this class is the “prison documentation of hazard management”. Analysis accomplished: Economic analysis Industry evaluation Firm analysis If financial institution need to lend some amount to a selected firm, it needs to investigate the financial system at first, then it need to investigate the complete industry. After that analysis of the company is conducted. In analyzing we do see matters, one is Risk and other is Return. Financial gadget hesitates to present credit to demise enterprise or quarter like textile and many others. Rising enterprise is meals and farm animals. It might be beneficial for banks to offer credit score to this enterprise. 4th day of 5th week 4th day I found out the main component of this department and that was the process of growing a courting with a consumer. Develop dating: After figuring out precise enterprise, we find methods to create relationship with that enterprise. For growing relationship, the following responsibilities are executed like: Detail study of credit score rating Identify the hazard involved Identify areas of hazard Components of credit: Capacity of repayment Willingness to pay 5th day of 5th week fifth day I spent in discussing my diverse queries related with my previous work accomplished in this department and then learned about the 5c’s of credit evaluation which might be kept in thoughts whilst granting money to any patron. Five C’s of credit analysis: Character Personal attributes of any man or woman are decided in this analysis. Capacity Capacity to pay off is checked thru this. Cash waft Operating cycle to generate cash flow is determined to locate that whether individual has enough cash to pay off. Capital Company’s fairness in opposition to debt is decided to find that whether the firm’s function Conditions Past, gift and destiny condition of firm is decided. Bank once in a while behavior PEST evaluation to make selection of lending. PEST means political, low-priced, social and technological evaluation. Sixth day of 5th week 6th day I further discussed queries which were arised in my mind and discovered extra which some thing changed into new for me. CPRMG: It stands for credit score policy and threat control organization. Function of hazard management is performed through this organization in head office of financial institution. This institution implements the credit risk coverage and manages risk. It tells the financial institution, to which enterprise financial institution need to enhance credit. It ensures the credit policy implementation It manages deviations from policy In credit coverage deviation, CPRMG assessments that whether the process followed is in line with coverage defined and if there may be any deviation. It gives approval upon sure phrases and situations. Credit authorization branch assessments the compliance of phrases and conditions given by using CPRMG relating to troubles of credit and its approval. Sixth C introduced to credit score risk additives is “collateral”, that’s security towards credit. It is the most modern day in additives. WORK DONE IN 6TH WEEK 6th week become last week of my internship. During internship, I became exceptionally assured as I keenly found the general operations of department and concluded that it’s far higher than its other branches. The proof of that is that this department stood 2nd in profitability in important sector. I were given superb revel in there due to cooperative surroundings. I carried out unique SWOT analysis and became succesful to discuss it in my record. I discussed this analysis with personnel of bank and that they were agreed to me. I additionally accumulated some annexure for my file and were given my letter of internship. I frolicked in all departments and requested a few questions relating my internship. During internship I did some following realistic work: I crammed deposit-clips I reviewed and rechecked the details of account establishing shape I reviewed the sorts of dormant account Employees had been very cooperative to me in all my internship. Their cooperative nature and politeness is the important thing to achievement for them. LAST DAY AT BANK Last day is complete of happiness because it became a tiring job for me to sit the complete day one location I appreciate the personnel who did not get indignant from sitting for hours. I loved to learnt a lot from bank but I in my view dislike to have this as my career as I uninterested to peer equal habitual duties there’s much less opportunity to benefit a lot knowledge as does teaching job entail. Last day I in my opinion went to all people who guided me in the course of this short time of my internship. And offered the thanks card to them Thank God I even have completed my internship efficaciously!!! FINANCIAL ANALYSIS Financial evaluation (also called economic announcement analysis or accounting evaluation) refers to an evaluation of the viability, stability and profitability of a commercial enterprise, sub-business or challenge. It is carried out by professionals who put together reports the usage of ratios that make use of records taken from economic statements and different reports. These reports are generally offered to top control as one in every of their bases in making business selections. Based on those reviews, control may also: 1. Continue or discontinue its predominant operation or part of its enterprise; 2. Make or purchase positive substances in the manufacture of its product; three. Acquire or lease/rent sure machineries and gadget in the production of its goods; four. Issue shares or negotiate for a bank loan to boom its operating capital; 5. Make choices concerning investing or lending capital; Other choices that permit control to make an knowledgeable choice on various options inside the behavior of its enterprise. Ratio Analysis enables the business proprietor/supervisor to identify developments in a business and to compare its overall performance and condition with the average overall performance of similar organizations in the same industry. To try this examine your ratios with the common of groups similar to yours and evaluate your own ratios for several successive years, looking especially for any unfavorable trends that can be beginning. Ratio evaluation might also offer the all-crucial early caution warning signs that let you remedy your commercial enterprise troubles earlier than your enterprise is destroyed with the aid of them. Financial Analysis is of two types particularly: 1. Specific / Banking Ratio Analysis. 2. General Ratio Analysis. SPECIFIC/BANKING RATIOS ANALYSIS EARNING ASSETS TO TOTAL ASSETS Earning property includes loans, leases, investment securities, and cash market belongings. It excludes coins and non earning deposits plus constant assets. This ratio suggests how properly financial institution control puts bank property to work. In quick it suggests the performance of control .So we will say that it’s miles ACTIVITY ratio of bank. It isn’t always one hundred% on top of things of management. It consists of stability with different banks, due from financial organization, financing and funding which might be most important part of the incomes for the bank. But it excludes non-incomes belongings like cash and stability with treasury banks, running fixed property and different property. High overall performance banks have constantly excessive ratio. Earning property to overall property ratio 2009 Earning property to overall assets ratio= Earning Assets / Total Assets = 24,a hundred sixty five,959,000/24,197,826,000 = eighty two.Forty six% Earning belongings to total property ratio 2010 Earning belongings to total belongings ratio= Earning Assets / Total assets = 50004407000/57196996000 = 87% Items involved: Earning Asset: Balance with other banks Lending to financial institutions advances Investment Total Asset: Cash and stability with treasury banks Operating repair Assets Balance with other banks Due from economic institutions Financing Investment EARNING ASSET TO TOTAL ASSET RATIO Critical Analysis: The graph reveals that the incomes asset to overall asset ratio is extended and it’s far favorable as this ratio is basically measures the interest of control so we are able to say that bank is making use of its assets more efficiently and is placing maximum assets in earnings generating manner. Reasons for Change: ABPL is utilizing its assets extra correctly as there is a good change of 4.54% within the ratio. Thisn alternate is due to lower in stability with different banks, financing funding and boom in working repair assets and other property. The major reason of boom in ratio is the lower in deffered tax asset due to which the ratio of general assets is decreased as compared to general belongings. Impact of Change: Increases in earring asset will left a wonderful effect on financial institution progress and it’ll provide an excessive amount of self assurance to the prospective clients as it’s far the main source of financial institution earning. RETURN ON EARNING ASSETS Return on earning asset measures the profitability relative to size this is maximum normally used in studying banks and finance organizations. This ratio suggests the electricity of investment and incomes Asset. The higher the ratio shows the effectiveness of management towards the choice of funding. Items concerned: Earning Asset: Balance with other banks Due from economic institutions Financing Investment NET Profit after tax Return on Earning assets 2009 Return on Earning property = Net income after tax /Earning Assets =- 281,548,000/24,a hundred sixty five,959,000 = -1.17% Return on Earning property 2010 Return on Earning belongings = Net profit after tax /Earning Assets = -1039595000/50004407000 = – zero.207% RETURN ON EARNING ASSETS RATIO Critical Analysis: The above desk exhibits that go back on incomes property ratio is negative as examine to the previous 12 months because of less portion of earning property in general asset and additionally the internet margin decrease on this year due to growth in expenses wherein hobby fee and horrific money owed are outstanding. Reasons for Change: It is probably possible organization is inefficient in deciding on the proper investment opportunity, or because of poor profitability of the organisation. Company incomes property ratio in modern 12 months is likewise much less so organization has stagnant its money in property which would generate earnings or financial institution has selected the negative investment opportunity. The return is also much less because of the excessive taxes is given to the Pakistani authorities being a overseas organisation so it additionally influences the nominator parent as the nominator parent is in poor so it has a tendency to decrease the go back on earning asset as nicely. Impact of Change: The decrease in this ratio may effect on the selection of investors. It might also reduce the depositors. NET MARGIN TO EARNING ASSET It is the important thing determinant of the financial institution profitability, for it presents a demonstration of control ability to govern the unfold among interest profits and hobby expenses. This ratio indicates the net unfold function of the bank. Items involved: Interest Margin: Profit or return and financing Investment and site Return on deposits and other due Earning Assets: Balance with different banks Due from economic establishments Financing Investment Net margin to earning belongings 2009 Return on Earning property = Net Margin /Earning Assets = 514,628,000/24,one hundred sixty five,959,000 = 2.13% Net margin to earning assets 2010 Return on Earning assets = Net Margin /Earning Assets = 540608000/50004407000 = 1.08 NET MARGIN RATIO Critical Analysis: The following table well-knownshows the net margin ratio is decreasing in comparison to the 12 months 2008, due to the fact majority of the indicators are negative. Reasons for Change: It is due to growth in hobby cost as well as less incomes belongings has been hired so benefit is in the long run less. Due to terrible making an investment go back is decrease results in business enterprise toward lose of their customer because the earnings could were allocated between the depositors. Impact of Change: Management’s potential to govern the spread between interest earnings and hobby fee will decrease, it’ll lessen the profitability of the bank and also decreases the wide variety of purchaser while there may be much less return for then they transfer from this bank to excessive incomes financial institution. LOAN LOSS COVERAGE RATIO Banks use the mortgage-loss insurance ratio to outline the first-rate of its property and how properly it protects itself from losses caused by difficult loans. The better this ratio is, the higher the bank is dealing with itself with reference to loans. Items worried: Pretax earnings Net rate off Provision towards none performing financing (Net) Loan loss coverage ratio 2009 Loan loss coverage ratio= Pre-tax income +Prov. In opposition to NPL (internet)/ net price off+ Prov. In opposition to NPL =-380,634,000+-422,017,000/ -453,531,000+-422,017,000 = 0.Ninety two:1 Loan loss insurance ratio 2010 Loan loss insurance ratio= Pre-tax income +Prov. In opposition to NPL (net)/ internet charge off+ Prov. In opposition to NPL = -1572307000+759301000/ 764375000+759301000 = -zero.5:1 LOAN LOSS TO COVERAGE RATIO Critical Analysis: The graph indicates that loan loss to coverage ratio is adverse as compare to previous year because majority of the signs aren’t satisfactory. Reasons for Change: Provision towards non appearing financing isn’t good enough because of the greater growth in terrible money owed in 2010 . So its well-knownshows bank is not green in covering its debts. Impact of Change: This will give the high-quality unsatisfaction to the Customer as their cash is in not secure hands. DEPOSIT TIME CAPITAL The ratio of deposit time’s capital issues each depositors and stockholders. To a few extent it is also referred to as debt to equity ratio it issues both depositors and stockholders & how tons outsiders percentage in commercial enterprise overall fairness. It indicates the financial institution debt function. More capital implies a extra margin of safety whilst large deposit base offers prospects of higher go back to stakeholders, for the reason that more money is available for funding reason. Deposit time capital 2009 Deposit time to capital ratio= Avg. Deposit/ capital =22,636,323,000/ 2,753,017,000 = 8.22 instances Deposit time capital 2010 Deposit time to capital ratio = Avg. Deposit/ capital = 49324209000/ 6119077000 = eight.0607 times DEPOSIT RATIO Critical Analysis: The above table well-knownshows that ABPL is no longer in favorable situation as compare to the previous yr as deposits are lowered it manner that financial institution isn’t in role to draw clients to get deposits however alternatively it’s far favorable that its solvency is strong. Reasons for Change: Due to decrease in Depositors this ratio is decreasing. Impact of Change: ABPL go back for investor decreases because the depositor decrease as compare to the previous which shows that the bank’s solvency isn’t at stake. LOAN TO DEPOSIT RATIO Average overall loans to common total deposits are a sort of asset to liability ratio. Loans make up a large part of banks assets & its predominant obligation is the deposits which could withdraw on request inside the role of bank in regards to taking hazard. Higher ratio indicate higher solvency of the bank. This is a form of debt coverage ratio and its measures the position of the bank. Higher ratio shows the higher solvency of the financial institution.It basically suggests the belongings towards the depositor’s amount. Items involved Loans: Balance with other banks Due from monetary institutes Financing Average depositors Loan to deposit ratio 2009 Loan to deposit ratio= Loan/ deposit =22,463,360,000/ 22,636,323,000 = 99% Loan to deposit ratio 2010 Loan to deposit ratio= Loan/ deposit =34,386,818,000/ forty nine,324,209,000 = 70% LOAN TO DEPOSIT RATIO Critical Analysis: The following table famous an negative condition as examine to the preceding year due to some items. Reasons for Change: Depositors are not as increase as advances as financial institution share of general property is greater as evaluating to earning belongings. Only possibly motive for this modification is the growing hobby fees and additionally that banks maintained their unfold (around 7%) coupled with afflicted financial system in which agencies have been shutting down however the Al-baraka ADR ratio is above the enterprise average which is 70%. Impact of Change: Lower investment opportunities through the consumer impact on ABPL over all function. As loaning is getting lowering with a view to no longer a positive sign for a bank as loan are the basic source of income for a bank. EQUITY TO TOTAL ASSET/ FUNDS TO TOTAL ASSETS It is also called proprietary/owner’s/budget to general assets ratio measures the extent of fairness ownership in bank. This possession offers the cushion towards the threat of using debt and leverage in general sources. High contribution indicates better solvency. The equity to property ratio shows the finance and profitability of the employer. It shows what share of total belongings is financed with the aid of equity, and subsequently what percentage is financed by way of loans and non-fairness stocks. A low equity to property ratio means plenty of the commercial enterprise is financed by using loans, or non-equity shares, while a excessive fairness to belongings ratio means that maximum or all of the lengthy-time period capital is equity. Items concerned: Equity Total Assets Equity to overall assets ratio 2009 Equity to total assets ratio= equity/ total assets =2,753,017,000/ 29,304,960,000 = nine.Four% Equity to general property ratio 2010 Equity to overall assets ratio= equity/ total belongings =6,119,077,000/ 57,196,996,000 = 10.70% SOLVENCY RATIO Critical Analysis: The ABPL equity to total asset ratio is favorable as compare to the preceding due to the fact majority of the signs are in appropriate condition. Reasons for Change: ABPL is confident to take greater money owed because of first-class solvency ratio as it’s far growing every day financial institution didn’t have earnings this 12 months and ultimate 12 months as nicely. However fewer rations shows bank overall belongings are financed by the loans. On a more in-depth appearance majority of the lending had been on a shorter-term foundation, motive being the negative economic conditions and shorter-time period advances enables in risk aversion. Impact of Change: ABPL has now not right profitability it’s miles in loss for approximately consecutive years so when equity is inadequate to financing the property increasingly loans must be taken so corporation can cross into insolvency. DUE PONT ANALYSIS Profitability ratios offer several unique measures of the achievement of the company at producing profits. Profitability is the internet end result of some of policies and choices. The ratio examined to this point provides useful clues as to the effectiveness of a firm’s operations. Nevertheless, the profitability ratios pass on to show the blended results of liquidity .Assets control, and debt on running end result. Item Involved Total Assets: Cash and balance with treasury banks Operating restoration Asset Balance with different banks Due from financial institutions Financing Investment Earnings to be had for commonplace inventory holders Common Stock Equity Number of stocks of Common stock RETURN ON ASSETS Return on overall property 2009 Return on general assets= Earnings to be had for common inventory holder/ total belongings*a hundred = – 281,548,000/ 29,304,960,000*a hundred = – 0.Ninety six% Return on overall property 2010 Return on total belongings= Earnings available for not unusual stock holder/ total belongings*100 = – 1,039,595,000/ 57,196,996,000*a hundred = -1.82% RETURN ON TOTAL ASSETS RETURN ON EQUITY Return on general fairness 2009 Return on overall equity= earning available for not unusual inventory holder/ common inventory fairness*a hundred = -281,548,000/ 2,753,017,000*one hundred = -10.2% Return on overall fairness 2010 Return on overall fairness= earning available for common inventory holder/ common inventory fairness*100 =-1,039,595,000/6,119,077,000*one hundred = -sixteen.99% RETURN ON TOTAL EQUITY RETURN ON INVESTMENT Return on total investment 2009 Return on funding= Loss after taxation/overall investment*100 = -281,548,000/1,702,599,000*a hundred = -sixteen.Fifty four% Return on total investment 2010 Return on investment= Loss after taxation/general funding*100 = -1,039,595,000/15,617,589,000*a hundred = -6.Sixty six% RETURN ON TOTAL INVESTMENT Critical Analysis: The ability of the Al-baraka Islamic bank to make profit within the present day year is damaging as examine to preceding yr due to the fact all signs are negative. Reasons for Change: Despite this fragile running environment Albaraka is in loss for years One of the reason of this terrible profitability ratio are due to decrease in equity due to boom within the provision towards non appearing financing additionally the earning belongings aren’t growing in portion to overall assets. It additionally suggests that the management isn’t using the assets successfully and efficaciously, because of useless use of sources the profitability isn’t always favorable. Poor profitability is also because of heavy tax expenditure is paid being a foreign corporation. Impact of Change: As the profitability ratio is not up to speed it may not attract the potential buyers and it will ultimately impact the overall role of the agency within the long run. Company may not be capable of pay off its debt. And additionally much less return is given to the shareholders. SOLVENCY It is also known as monetary leverage ratio debt ratio, minored indication one of the long time solvency of the company .Unlike liquidity ratio that cancelled with short time period analyst liabilities debt ratio of the firm shows the amount of others peoples many being used and generate profits. More money owed the firm has to generate is extra danger beings unable to fulfill is cancelled money owed bills and becoming financial institution receipts .In generate the greater money owed firm utilized in valuations to its overall merits the firm generates its economic leverage is the magnification of nonetheless return introduction matters the use of the price financing which include money owed favored inventory Current and capability lender of lengthy-term price range and as financial institution and financial institution holders are interested in solvency ratios. When business man solvency rations boom appreciably Bondholder s and lender risk increase due to the fact more creditor opposition for that’s company resources if the devour into economic issues inventory holder additionally concern with the amount of debt a commercial enterprise man has grow to be financial institution holders paid earlier than stock holder. Total Asset: Cash and balance with treasury banks Operating restore Assets Balance with different banks Due from monetary institutions Financing Investment Total Debts: Bills payable Due to financial group Deposit and other money owed Subordinated loan Liabilities against asset concern to finance leases Deferred tax liabilities Other liabilities Equity: DEBT RATIO/ SOLVENCY RATIO Debt ratio 2009 Debt ratio= Total money owed /Total assets = 26551943000/29,304,960,000 = 90.5% Debt ratio 2010 Debt ratio= Total money owed /Total assets = 2116583000/60,763,664,000 = three.Forty eight% DEBT RATIO DEBT TO EQUITY RATIoO Item worried Total Debts: Bills payable Due to monetary organization Deposit and different bills Subordinated loan Liabilities against asset challenge to finance leases Deferred tax liabilities Other liabilities Equity Debt to fairness ratio 2009 Debt to equity ratio= Total debts /equity = 26551943000/2,753,017,000 = nine.6% Debt to fairness ratio 2010 Debt to fairness ratio= Total debts /equity = 2116583000/6,119,077,000 = 34.59% DEBT TO EQUITY RATIO Critical Analysis: The following table exhibits that the ability of paying the money owed of “Al-baraka Islamic bank” is destructive in contemporary year in comparison to ultimate year due to the fact all the indicators are showing negative. Reasons for Change: The contribution of equity is getting reduced in previous years.Al-baraka Islamic financial institution is availing excessive credit score standing. Impact of Change: Depositors would get unhappy, and Al-baraka Islamic financial institution is unable to draw the brand new depositors in future if debt function remains same. Due to reduction in equity creditor could show hesitation for investment due to lack of security. Al-baraka Islamic bank could become bancrupt due to inability of paying off the money owed. Borrowing from the State Bank of Pakistan underneath Islamic Export Refinance Scheme could get disturbed. The Al-baraka Islamic bank extended ineptness in 2008 might motive deterioration in its capacity to pay debt accurately. TREND ANALYSIS Trend analysis is of kinds: Horizontal analysis Vertical analysis Horizontal Analysis This approach is likewise called comparative analysis. It is carried out by setting consecutive stability sheet, income declaration or declaration of cash waft facet-via-facet and reviewing modifications in character categories on a 12 months-to-year or multiyear basis. The most critical object discovered with the aid of comparative financial assertion evaluation is trend. A assessment of statements over numerous years reveals path, velocity and volume of a fashion(s). The horizontal financial statements evaluation is completed by restating quantity of each item or organization of objects as a percentage. Such percentages are calculated by using choosing a base year and assign a weight of one hundred to the amount of each item in the base 12 months assertion. Thereafter, the quantities of similar gadgets or companies of items in previous or next economic statements are expressed as a percentage of the base year amount. The ensuing figures are known as index numbers or trend ratios. Formula = Current Year amount / Base Year quantity * a hundred Horizontal analysis, even as easy to execute and beneficial to a sure extent, has its obstacles. These limitations encompass: Being surprisingly depending on the selection of base yr and the period below examination in the economic model. Horizontal evaluation gives little insight into why the trend came about in a economic version. Horizontal analysis does no longer offer insight into whether or not the fashion in the financial version results changed into superior/not so good as some benchmark. Horizontal analysis does not deal with the mission of bad numbers.

HORIZONTAL ANALYSIS Rs. 000 HORIZONTAL ANALYSIS’ TREND, AVG % ; SPEED CRITICAL ANALYSIS ASSETS Cash and balance with treasury financial institution It indicates mixed trend with an avg. Of nine.Three % having upward movement displaying favorable situation in 2010 Balances with other banks It indicates mixed fashion with an avg. Of 26.Four % having upward motion displaying favorable condition in 2010 Due from economic group It shows mixed trend with an avg. Of -33.3 % having downward motion displaying unfavourable situation in 2010. Investments It indicates blended trend with an avg. Of 417.84 % having upward movement displaying favorable condition in 2010. Financing and making an investment asset It indicates mixed trend with an avg. Of 37.9 % having upward motion displaying favorable condition in 2010 Operating constant asset It indicates blended trend with an avg. Of 853.Fifty two % having upward movement displaying favorable situation in 2010 Deferred tax asset It shows upward trend with an avg. Of -33.33 % having downward movement displaying damaging condition in 2010. Other asset It shows upward trend with an avg. Of 104.28 % having upward movement showing favorable situation in 2010 Total belongings It shows mixed trend with an avg. Of fifty eight.411 % having upward movement displaying favorable condition in 2010. LAIBILITIES Bills payable It indicates upward fashion with an avg. Of 28.24 % having upward movement showing adverse condition in 2010. Due to monetary organization It suggests combined trend with an avg. Of 36.84 % having upward motion showing unfavourable situation in 2010. Deposits and different money owed It suggests combined fashion with an avg. Of sixty three.58 % having upward motion displaying adverse condition in 2010 Sub-ordinated loan It shows downward trend with an avg. Of -33.33 % having upward movement displaying negative situation in 2010 Liabilities against belongings concern to finance lease It shows downward fashion with an avg. Of -33.33 % having downward motion showing favorable trend in 2010 Deferred tax liabilities It suggests downward fashion with an avg. Of -33.33 % having downward motion showing favorable condition in 2010 Other liabilities It suggests mixed trend with an avg. Of 38.Forty four % having downward movement displaying favorable situation in 2010 Total liabilities It suggests mixed trend with an avg. Of fifty nine.Forty four % having downward movement showing adverse situation in 2010 Horizontal analysis of income assertion

HORIZNTAL ANALYSIS OF INCOME STATEMENT SHOWING TREND

AVG.% ; SPEED Profit/go back on financing, funding and placements earned It is showing upward motion displaying favorable condition in 2010 with an avg. Velocity of 15.Seventy five% Return on deposits and different dues expensed It is showing mixed motion displaying favorable condition in 2010 with an avg. Velocity of 17.39%. Net unfold It is displaying combined movement showing damaging circumstance in 2010 with an avg. Speed of 11.33%. Provision against non-appearing financings net It is showing downward motion displaying favorable condition in 2010 with an avg. Speed of -1498.29 %. Provision for diminution in value of investment It is displaying downward movement displaying favorable situation in 2010 with an avg. Speed of -33.33 %. Bad debt written off at once It is displaying downward movement showing favorable circumstance in 2010 with an avg. Velocity of -33.33 %. Net provision It is displaying upward motion showing favorable condition in 2010 with an avg. Pace of -1441 %.

Net spread after proision/internet markup It is showing combined motion showing detrimental circumstance in 2010 with an avg. Pace of –fifty two.7 %. Fee commision and brokerage income It is showing downward movement displaying damaging condition in 2010 with an avg. Speed of -15.3095 %. Divident profits It is displaying downward movement showing unfavorable situation in 2010 with an avg. Velocity of -32.5272 %. Income from dealing in foreign currencies It is displaying mixed motion displaying favorable condition in 2010 with an avg. Speed of 23 %. Net benefit on sale of funding It is displaying downward motion showing adverse circumstance in 2010 with an avg. Pace of -22.8587 %. Unrealized loss on revaluation of investments( held for trading) It is displaying downward movement showing unfavourable condition in 2010 with an avg. Pace of -33.3333 %. Other earnings It is showing blended motion displaying negative condition in 2010 with an avg. Speed of -758.156 %. Total other profits It is showing combined motion showing damaging condition in 2010 with an avg. Velocity of –2.161 %. Net markup It is showing downward motion showing damaging circumstance in 2010 with an avg. Pace of –32.1625 %. Admin expenses It is showing upward motion displaying unfavorable situation in 2010 with an avg. Speed of –116.7706 %.

Other provisions/write off It is showing upward movement showing unfavourable condition in 2010 with an avg. Speed of –17588.Ninety six %. Other charges It is displaying mixed movement displaying favorable situation in 2010 with an avg. Pace of –10.Ninety five %. Total other prices It is showing upward movement displaying damaging circumstance in 2010 with an avg. Pace of –one hundred twenty five.167 %. Net other earnings /loss It is showing upward movement showing favorable circumstance in 2010 with an avg. Speed of –133.29 %. Extra ordinary unusual objects It is displaying downward movement showing unfavourable condition in 2010 with an avg. Velocity of –33.33 %. Loss/ earnings earlier than taxation It is showing upward movement showing favorable condition in 2010 with an avg. Velocity of –33.33 %. Taxation Current ; earlier years taxation is displaying a lowering avg. Speed of -349.187% ; -33.33% at the same time as deffered taxation is displaying upward trend with avg velocity of 242.0371% which isn’t always an awesome signal. Loss/ income after taxation It is displaying upward movement displaying favorable condition in 2010 with an avg. Velocity of –223.96 %.

Unremitted earnings delivered forward It is displaying upward movement showing destructive situation in 2010 with an avg. Velocity of -33.33 %. Unremitted profit It is showing down ward motion displaying unfavorable condition in 2010 with an avg. Velocity of –33.33 %. Net loss /income after taxation It is showing down ward movement showing unfavourable situation in 2010 with an avg. Pace of –119.891 %. Vertical Analysis When using vertical evaluation, the analyst calculates each object on a single monetary declaration as a percent of a total. The term vertical analysis applies because each year’s figures are listed vertically on a economic declaration. The total utilized by the analyst at the income statement is net sales revenue, even as on the stability sheet it is overall belongings. This approach to financial announcement analysis, also referred to as element possibilities, produces common-length monetary statements. Common-length stability sheets and income statements may be extra without difficulty in comparison, whether across the years for a single employer or throughout specific agencies. Vertical evaluation is a technique for figuring out courting among gadgets within the identical monetary statement with the aid of expressing all quantities as the share of the whole quantity taken as a hundred. In a stability sheet, as an instance, cash and other assets are shown as a percent of the entire belongings and, in an income assertion, each fee is shown as a percent of the sales revenue. In Vertical evaluation, numerous components of the monetary statements are standardized through expressing them as a percentage of a few bases. Examples of not unusual-sized statements include: Components of the stability sheet expressed as a percentage of total property Components of the earnings assertion expressed as a percentage of sales or sales Balance sheet

CRITICAL ANALYSIS

Cash and balance with treasury bank Cash and balance with treasury bank are displaying lowering fashion from 12 months 2007-2009 while a slight boom can be visible in 2010 Balances with other banks These are displaying mix trend as there may be slight increase in 2008 then higher decrease in 2009 then again multiplied in 2010 Due from economic group These are displaying blend trend in 2007-2008 it’s miles 0 then moderate growth can be considered Investments These are showing excessive increasing fashion which shows that financial institution has enough deposits to spend money on worthwhile locations Financing and making an investment asset It is displaying pretty lowering fashion for the duration of the length of 2007-2010 Operating fixed asset It shows growing trend from 2007-2009 on the other hand reduced in 2010 Deferred tax asset It indicates growing fashion from 2007-2009 alternatively decreased in 2010 Other asset These are showing a combined trend in length 2007-2010 Bills payable These are showing a mixed fashion in length 2007-2010 Due to economic institution It is displaying mix but developing fashion which is an destructive situation Deposits and different bills It is displaying blend but growing fashion that’s an damaging condition Liabilities towards assets challenge to finance hire It shows growing trend from 2007-2010 Deferred tax liabilities It is lowering trend in 2010 that’s a good situation

Other liabilities

It is showing blend but decreasing fashion that’s an favorable situation Vertical analysis of Income statement Critical evaluation Fee commission and brokerage income It is showing blend however decreasing trend throught out the years beneath analysis. Net spread after proision/net markup It is showing blend however reducing trend throught out the years below analysis. Net provision It is showing continuously upward fashion all through the years under analysis Bad debt written off immediately Threre aren’t any bad debt written off throughout the length Provision for diminution in price of investment It is showing mix but decreasing fashion throught out the years below evaluation. Provision in opposition to non-appearing financings net It is showing mix however reducing trend throught out the years beneath evaluation. Net unfold It is displaying usual lowering fashion in length 2007-2009 Return on deposits and other dues expensed This is showing mixed fashion but still strong Profit/return on financing, investment and placements earned This is showing mixed trend however still stable Divident income It is displaying constantly a decreasing fashion Net loss /earnings after taxation It is displaying pretty bad consequences for the duration of length 2007-2010 Unremitted earnings It is displaying incredibly poor results during length 2007-2010 Unremitted income added forward Showing upward however nevertheless bad results in the course of length 2007-2010 Loss/ income after taxation It is displaying continuously a reducing trend Taxation Deffered taxation is showing growing trend while modern-day and prior taxation are showing reducing trend Loss/ profit earlier than taxation It is showing highly favorable trendand is growing constantly increasing fashion Extra everyday unusual items There are no uncommon items seen all through the 2007-2010 Net different income /loss It is displaying relatively favorable trendand is increasing constantly growing fashion and due to absence of extra regular objects it’s miles identical toprofit before tax. Total different expenses It is displaying blend but growing fashion its not a high quality signal Other fees It is displaying blend bt lowering fashion Other provisions/write off It is displaying growing trend throughout the thinking about duration Admin expenses It is showing blend but growing trend upto a few volume Net markup It is showing extraordinarily decreasing trend in 2010 Total other income It is showing blend trend however continues to be strong until 2010

SWOT ANALYSIS

SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT is beneficial device for offering a framework for analysis of an agency. It is significant approach to make tests in phrases of internal and outside environment of the organization and to formulate techniques by analyzing its internal strengths and weaknesses, outside opportunities and threats. SWOT evaluation for ALBARAKA BANK PAKISTAN LIMITED GUJRANWALA is as comply with:

STRENGTHS

Strength may be described as an area in which a organisation is satisfactory at doing something or a characteristic that places the employer at an advantage in evaluation to its competitors. Pioneer in Islamic banks: Al Baraka Islamic Bank (Aib) has the honor of being the pioneer of Islamic banking in Pakistan and has been running in the us of a as branches of Al Baraka Islamic Bank Bahrain for the reason that Commitment to Islamic Shariah: Striving to develop an integrated Islamic Financial System. Compliance with the regulations and ideas of Islamic Shariah is the center of the banking and monetary sports of the Bank. To this stop, Albaraka has successfully required the recommendation and know-how of Islamic scholars tons-in demand for their understanding and piety from everywhere in the Islamic global to guide its path and display its performance. The Banks’ sports and operations are often scrutinized by using its Shariah Advisory Board. Large Branches: It has comparatively largest branch network among personal Islamic banks of Pakistan the range is increasing as the Islamic banking is prospering every day. Experienced and Qualified Staff: During the internship it has been found that the workforce/personnel of the enterprise is certified and skilled. Many of the bank officers have were given increase knowledge and revel in in the respected fields Excellent Branch Appearance: AIB Gujranwala branch has excellently furnished, flora inside financial institution give a relaxing view. ABPL has edge than different banks to have good interior. This properly interior also provokes the stroll in purchaser to make everlasting contractual courting with the financial institution.

Good PR with Customers: The courting of the manager and the alternative staff of the corporation is clearly appropriate with the clients, which ends up in exact will and loyalty of the clients in the direction of the agency. Global Expansion: Al-baraka is a subsidiary of Bahrain so it operating in many nations. Like Jordan, Indonesia, turkey, Tunis, Algeria, Lebanon, Egypt, Syria, S. Africa, Bahrain. Good Managerial Skills: The managers are completely privy to the latest managerial ideas and are capable of address any type of situation. Global Recognition: Al-baraka Islamic financial institution isn’t always best recognized with the aid of the Pakistani as it has many subsidiaries over the globe. It got an amazing reputation in Islamic Banking over the globe. Job Satisfaction at All Levels: Job pleasure is one of the essential elements for the employees to be motivated. The humans inside the organization underneath consideration have been observed particularly happy with their jobs. Customer Loyalty: Al-baraka has few and dependable consumer and that they used to avail each facility from the Al-baraka they by no means switch from Albaraka to any traditional banks. As Al-baraka give unique protocol to retain their customer with the aid of giving them extra centers. Continuous Performance Appraisal: Performance appraisal is the way by way of which you can still examine the worker’s overall performance; it effects within the enhancement of the organisation’s normal performance.

The overall performance appraisal is completed constantly on this organisation, which ends up in higher overall performance. Management: As the manipulate may be very corporative so the employees sense being at domestic mainly woman employees top management didn’t exerts its incorrect affect on employees they did now not punish every body on character foundation as a substitute try and hold away the personal topics if any. Riba loose financing: Being an Islamic financial institution Al-baraka has an aspect that it doesn’t deal in riba transaction. It deal is riba loose transaction, its expose the cost to the client then add the earnings margin and the customer is aware of about the income of the bank. Friendly environment The environment of the enterprise is very friendly. People over here are very cooperative, now not only with the clients but among themselves as properly. Hard working Employees: Al-baraka got very difficult running employees they’re come from respectable universities and being hired after screening method. They are very assertive towards their each day sports and tried to complete it on due date never allow it pending. Competent senior management: The senior control within the corporation may be very a whole lot ready and experienced; they correctly cope with extraordinary internal and external affairs. Less turnover charge: As the personnel turnover charge is almost negligible. As the Al-baraka financial institution given fee to its client and promoting them via help them of their daily recurring work.

Less Absenteeism: Employees used to return to the financial institution each day else a few urgent work from home. So besides the pressing paintings worker generally tend to come financial institution each day. Coping With Work force range: Employees at Al-baraka give due regard to every worker regardless of its religion so there is no discrimination on sects. No professional jealousy: I even have spent nearly 6 weeks within the financial institution for the duration of this spam of time I didn’t feel any professional jealousy, leg pulling or any other such issue. High task Involvement: Employees at Al-baraka bank have high process involvement as they didn’t flow from Al-baraka to another bank on bit better profits offer because of an excessive amount of candid and corporative personnel and control. Financial Support: al Baraka Islamicbank is the foreign bank. It is the subsidiary of BAHRAIN bank so on every occasion the financial institution faces any problem the Bahrain bank works as lender of ultimate motel for the Al-baraka Pakistan. Employee helps each different in work: During my internship I even have found that one employee help the opposite worker, irrespective that it’s miles associated with task or now not. High Job delight: People are very content on what they’re getting from bank and they may be no longer being discriminated so their activity delight is relatively high. Organizational Citizenship Behavior: Employees at Al-baraka are very corporative they used to have interaction to help other personnel in the event that they face any problem past their described obligations.

WEAKNESSES

A weak spot is defined as a place in an agency where the employer is not as proper at doing something as its competition or a aspect which an employer lacks for this reason putting the enterprise at drawback in assessment to its competition. Based on the above definition, ABL has the following weaknesses. No Research on new product: Al-baraka did now not produce any modern product considering its inspection so it is being below performing in studies and development which sooner or later leads to the reducing the quantity of consumer as client switch closer to modern product which add fee to their lives. Lack of newness: Employees come and go with the equal every day work there may be no new hobby for them in order that they suppose it as a monotonous activity. There is no enjoyment event for personnel for their get together. No HR department level at zonal and branch stage: Human useful resource department is one of the main necessities of any agency of this age. The corporation below attention, although comprise a HR department at headquarter however there are not any sub divisions at the provincial or branch level. So whilst distinct issues associated with HR are raised, they’re left unaddressed. Promotion is not primarily based upon on education rather seniority mainly: it is nearly largest predicament in all organisation that senior personnel are being promoted to higher stage of hierarchy irrespective of their instructional history so that they show not to be an awesome decision maker even no longer a great manger as they did no longer get those schooling officially so they appear to be a massive liability for any corporation.

Lack of funding in Capital Expenditure: As this subsidiary of Bahrain is discern employer show reluctance to do any big greenback funding in Pakistan due to uncertain political, monetary circumstance of bank. Centralized decision making: The choice making in the organization is absolutely centralized which ends within the lack of self assurance of the personnel over the control, employees might not want to follow the dictates, regulations and guidelines. Lack of frequent training: Though there’s schooling academy at head office, but the schooling applications are normally constrained to the managerial body of workers, there is a need of education at all the tiers. Lengthy recruitment procedure: The recruitment procedure is quite lengthy that can discourage the brand new comers. So, there may be a want to shorten the complete method. Less internal recruitment for new posts: It has been observed that within the enterprise under consideration, if new vacancies are allotted there’s a trend of external recruitment, which results inside the dissatisfaction of the modern-day personnel. Lack of Marketing Effort: The bank does not sell its corporate photograph, offerings, and so forth on a competitive manner. Hence lacks a ways behind in marketing effort. A need for aggressive marketing is there in the technology advertising in now turning into a part of every corporation. Work load: I experience that staff is less compared to the word load of corporation. Lack of right reception: There isn’t any right reception inside the branch and this formality is fulfilled by means of account establishing officer which results in the loss of operating pace.

OPPORTUNITIES

An opportunity can be defined as a alternate in outside surroundings which if well exploited with the organizational strengths will result in enhanced income, marketplace percentage, or income. Using its strengths, ABL can avail the subsequent possibilities. More certified human beings inside the market Due to the boom of hobby of humans in commercial enterprise area, many commercial enterprise establishments have been hooked up, which produces a good lot of certified and able business specialists. So, the company below consideration can rent more certified people from marketplace. Market enlargement: When new branches will open so its wide variety of purchaser could increases which the few branch did now not do so. So the incorporation of new branches Al-baraka can catch the most important marketplace percentage and as a result its marketplace expands. Training can beautify the worker’s skills. Training and development is one of the vital feature of human aid control. If the staff of the employer are well trained and advanced they’ll add to the value of the organization.

Familiarity about Al-baraka: For the expansion of market no longer most effective the big quantity of branches are enough rather there must be a proper commercial to permit the consumer understand about the financial institution and its product. So it’s miles desire that with effective promotional sports human beings attention about Al-baraka is viable. Eradication of Conventional Banking: As the stairs closer to eradication of conventional banking is promoted then purchaser go with the flow closer to Islamic banking increases. Awareness of Islamic banking: When humans get aware about the Islamic banking and difference among Islamic and conventional one so increasingly more purchaser inclined towards Islamic banks.

THREATS

Threat may be defined as a trade in external environment which if no longer met with proper techniques will bring about lack of sales, marketplace share, or profits. In the context of ABL’s outside surroundings, the subsequent ability threats exist: Increase in Competition The growing opposition in local as well as country wide and multinational degree also lower down the profitability of the financial institution and compelling the bank to use a massive quantity of funds to fulfill out opposition. Other banks have an impact on: Other private industrial financial institution with sound profitability is likewise a danger to ABI as purchaser would preferably pick the bank whose is monetary sturdy and presenting greater return as well as modern offerings. Good process opportunities outside: The different companies of similar nature are supplying more salaries and gain packages to their employees. So, there may be a danger to the corporation that their present day employees may also go away it. Other groups are the usage of better HR strategies. Other agencies of comparable nature are the use of higher and current HR strategies, so they’ve got an part to facilitate their personnel every time they need. It can be a critical chance to this organization as their personnel could now not be glad of their own agency so that it will have an effect on their overall performance.

CONCLUSION AND RECOMMENDATIONS CONCLUSION

The ALBARAKA BANK PAKISTAN LIMITED-GUJRANWALA is a new rising financial institution and it is attempting to get market share in the presence of country wide and overseas banks working in the us of a. It has played an vital function in boosting the economy of the us of a however there constantly exists a few room for improvement. After gazing this ABPL very carefully following results were concluded. Centralized choice making: The decision making continues to be centralized as the center and occasional degree control isn’t taken into self belief. No HR sub department; There are not any sub divisions on the provincial or department level. So when one of a kind problems related to HR are raised, they’re left unaddressed. Lack of technical knowhow: Most of the employees operating on this branch are not lots familiar with laptop. They simply realize a way to use their a part of software program if any hassle comes in the computer they are able to’t fix it. Congested seating: The spacing requires expansion. The personnel are seated congested .If the customers exceed extra than fifteen in wide variety, then the department get filled with lot of disturbance. Lenghty recruitment procedure: The recruitment method may be very prolonged it should be trimmed. Less marketing efforts: The advertising efforts on the branch degree are much less disciplined and there are nonintegrated efforts from all of the team of workers contributors. Breaches to some precise towns: Bank branches are constrained to some particular cities. The bank has been applying the modern concepts of management and marketing at each micro degrees. The indoors and exteriors of the department had been modified but the personnel of the department has been located less motivated toward the organizational targets.

IN SHORT Today age is complete of problems, demanding situations and opposition and there’s no business enterprise in this world that don’t have any demanding situations and opposition in the market. Everyone desires to get more benefit then its competitors and the race of leading the marketplace is on. Every company has to endeavor and pass violently to be the more worthwhile and to get a more aggressive facet inside the marketplace. The management of ABPLis taking sizeable strategic steps so that you can come forward as a robust, nicely-constructed and progressive institution. Concurrently it continues to make attempt to refine its merchandise and operations to cause them to extra well suited, well-applicable and in keeping with the wants and needs of customers. As we know that the commercial enterprise and financial situations in Pakistan continually continue to be uncertain and whatever can happen to the economy however nonetheless ABPLcontinues its effort to expand the brand new merchandise and in a brief time of span did their process very well. Its past fulfillment records spherical the sector also in Pakistan in few years and wealthy future well-knownshows the facts that ABPL has a totally brilliant and incredible destiny.

RECOMMENDATIONS

As I actually have spent six weeks in ABPL Gujranwala Anwar complicated branch for the Internship motive. During this period I actually have attempted my great to take a look at the banking surroundings inside the ABPL. I even have located a whole lot of strengths and weaknesses in the branch. On the basis of this observation I even have come up with certain suggestions specifically associated with the ABPL Gujranwala Branch but normally can be applicable to the entire banking machine of Pakistan inclusive of all other branches of ALBARAKA BANK PAKISTAN LIMITED-GUJRANWALA for development. These pointers will help to deal with the troubles being faced by the Bank and could decorate the performance and overall performance of the ABPL especially and all the banking region of the usa in preferred.

From the previous analysis of the monetary statements I have found out that that ALBARAKA BANK PAKISTAN LIMITED-GUJRANWALAis acting thoroughly on the grounds that its inception. It is pretty difficult to present idea to improve the banking conditions ABPL. As we recognize that nothing is best, there’s always a room for development, so I will propose following recommendations for ABPL: Introducing training programmes: Employees Training programmes must be introduced on non-stop basis in order that Employees have understanding with the modern trends particularly with the clients. Incentive plans for personnel: Bank ought to delivered incentive plans for personnel on ordinary foundation in order that if personnel may work whole heartedly for the welfare of their company. While giving incentives qualification, paintings, enjoy, tough paintings and such different factors should be considered. Avoidance of mismanagement of resources: Mismanagement of sources should be avoided as much as possible as it decreases income however also discourage difficult worker and honest employees. Recruitment of clean graduates: Fresh graduates should be recruited. As the combination of Experienced and sparkling can produce higher consequences and it’s going to improve the efficiency of management. Proper marketing compaign for cell banking: ABPL is going toward mobile banking however the problem is that a commonplace consumer has no idea of its utilization because of loss of advertising. I suppose that a proper marketing programme need to be released for patron’s consciousness.

Different schemes need to be conveyed to the centered customers Banks different schemes ought to be conveyed to the focused clients in order that to have a reasonable proportion in marketplace Salaries have to be raised: To encourage the personnel their remuneration / salaries need to be made at par. Aggressive exposure marketing campaign: Aggressive publicity campaign have to be added through press and Electronic media for new products and scheme via initiating lively advertising coverage. Provision of book: Bank have to adopt such an induction plan that once a client opens his account with the bank he ought to be supplied with a ebook which allows him to recognise the process of filing the cheques, pay-in-slip and many others. It will store numerous time of the bank team of workers in a while at some point of the conduct of the account of that patron. Same mindset with all customers: The attitude of the bankers with all of their customers is not the same; they pay greater interest and suitable carrier to a number of the customers and overlook a major portion of them. Some of the clients method to the bank officers and get their paintings completed before others; it isn’t always an amazing exercise.

All the clients must be dealt with equally. Increase in communique: ABPL need to growth its communique with customers approximately the phrases and situations of its one-of-a-kind products and services. Recruitment on advantage: In ABPL primarily recruitments are done thru guidelines or references of employees. Recruitment must be strictly on benefit with out a different prefer given to any candidate. Selection have to be on the idea of check and interview as like Muslim Commercial Bank (MCB) and other banks etc. This can make sure the entry of ready and worthy personnel into the bank. Scholarship packages for senior employees Scholarship programs need to be designed for senior personnel and department managers. The ABPL need to get into agreement with top foreign universities. Every year the bank must finance and ship their senior managers for in addition education overseas. After finishing touch of better schooling employees might be in a better function to attain the strategic goals of the financial institution and growth the general enterprise and profitability portfolio of the financial institution. Increase in no. Of branches The branch community have to be advanced and wide variety of branches must be increased to attain and offer services to maximum variety of customers. Took steps for up relationship expertise ABPL have to behavior significant refresher courses, seminars and workshop in order to improve the understanding of the body of workers. Information counter To offer proper statistics to purchasers, statistics counter need to be set wherein real specialists guide clients.

Cheque Book isn’t always printed: Al-baraka should use revealed cheque e book so that it will ease the Account establishing officer because it was a busy activity to print too many leaves of cheque e-book with precision. So printed cheque ebook eases the responsibilities of account beginning officer. More office boys: Al-baraka has best one office boy and he has to obey all the employees concurrently so it get difficult for him to do his task timely so Al-baraka hire more than 1 office boys. Research: Al-baraka has very few innovative products it must focus on studies and development for attracting the potential client as it’s miles crucial to work with differentiated merchandise in neck to neck competition. Inadequate body of workers: Al-baraka has loss of paintings force as one employee is on leave complete work is suffer so there should be someone who carry out its sports when someone is on depart. Steps to trade ideology of people It must clear the minds and exchange the ideology of those people who did now not find any difference in Conventional and Islamic banking which I suppose could be fruitful in destiny. Rotation of employees in numerous departments The top management ought to at once begin questioning in phrases of rotating the personnel in diverse departments, as this transforms work force into human capital. If a selected person keeps on employing his / her efforts in one sphere of banking it’d not most effective create a feel of monotony and tedium, however also no longer assist enhancing the ability set of ABPLemployees. Priority to human beings having understanding of islamic banking for employment Priority need to be given to the ones who have knowledge about Islamic banking in employment. Fair distribution of labor load Work burden should be pretty distributed

BIBLIOGRAPHY

“History of bank”, retrieved from www.Google.Com.Pk retrieved on 10/08/2011 “records regarding products & offerings”, retrieved from www.Albaraka.Com.Pk retrieved on 10/08/2011 “management of complete bank” retrieved from www.Albaraka.Com.Pk retrieved on 10/08/2011 “Annual audited reviews of Al Baraka Islamic Bank”, retrieved from www.Google.Com.Pk retrieved from 05/08/2011 “organizational hierarchy” received from debts officer ‘Mr. Irfan Azhar’ (ABPL) Discussion on “SWOT analysis” with department personnel on 12/08/2011 Difference among Islamic and traditional banking, discussed with vp of ABPL , dated 28/07/2011 “letter of credit information” retrieved on 23/07/2011 consulted with overseas change supervisor GLOSSARY D Diminishing Musharakah: (The promise can be made enforceable on the time of want).

The Holy Qur’an and the Sunnah of the Holy Prophet are very precise about fulfilling promises. The Holy Qur’an says: And satisfy the covenant. Surely, the covenant might be requested about (in the Hereafter) (Bani Isra’il: 34) G Gharar An unknown fact circumstance. An element which have to be prevented in Islamic banking transactions in view that excessive gharar can also render the contract null and void. H Hadith (plural, ahddith): A file at the pronouncing, deed or tacit approval of the Prophet, I Ijarah / Ijarah: Letting on rent. Ibra’ Giving up of a right. In an Islamic banking transaction, a creditor offers up element or all of his right to a debtor usually for early agreement of the debt. M Murabaha: Sale on earnings; Cost plus profit, sale at said value charge and mark-up, sale at a special income margin. Musharkah: It is an agreement under which the Islamic bank offers budget which are mingled with the funds of the commercial enterprise employer and others. The profit is distributed most of the partners in pre-decided ratios, while the loss is bome by using every partner in percentage to his contribution. “Profit is based on the agreement of the events, however loss is always issue to the ratio of funding.”

“All the conditions agreed upon through the Muslims are upheld, except a condition which lets in what’s prohibited or prohibits what is lawful.” Mudaraba /Mudarabah: The term refers to a form of commercial enterprise agreement wherein one birthday celebration brings capital and the other personal attempt. The proportionate percentage in profit is decided by using mutual settlement. But the loss, if any, is borne most effective by using the owner of the capital, wherein case the entrepreneur gets not anything for his labor. Q Quran: The Holy ebook containing the real phrases of Allah revealed to the Prophet Muhammad R Riba: Riba literally way boom, addition, enlargement or increase. It is, but, not every growth, or increase, which has been prohibited by means of Islam. In the Shariah, Riba technically refers back to the premium that have to be paid without any consideration. According to the jurists of Islam. Rahnu Making an asset as a security for a debt or a right of claim. S Shariah The Islamic law that is derived from diverse resources – the Quarn, the Hadith, the Sunnah, Ijma’ (consenus of Muslim students), qiyas (analogy) and ijtihad (private reasoning) of the Muslim jurists. It covers each aspect of existence. Z Zakat The compulsory payment of a positive proportion of the wealth and every and every sort of property answerable for zakat. This is paid annually for the advantage of eligible Muslim in the network. It is a chief economic way for organising social equity and leading the Muslim society to prosperity.