Dubai Islamic Bank Pakistan Ltd.

Principles of Islamic Business and Finance PUGC Sadaf Bilal
Principles of Islamic Business

and Finance
Assignment 1
Dubai Islamic Bank

Submission Detail
Date 27/08/2018
Day Monday
Submitted to: Ms. Sadaf Bilal
Submitted from: Bilal Imtiaz
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Q1.It is sometimes argued the Islamic financial system that the Islamic banks and
financial institutions, working since last three decades, did it bring any change in
the economic system. Why?
OVERVIEW OF THE ORGANIZATION
Dubai Islamic Bank is the leading Islamic bank operating in Pakistan. Its balance sheet size is improving
with the passage of time. It has redefined its role and has moved from a public sector organization into a
modern Islamic bank. The Bank's services are available to individuals, corporate entities. While it
continues to act as investor of public funds and it has diversified its business portfolio and is today a
lead player in the debt equity market, corporate investment banking, retail and consumer banking,
treasury services and is showing growing interest in promoting and developing the country's small and
medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen.
In today's competitive business environment, DIBPL need to redefine its role and shed the public sector
bank image, for a modern Islamic bank. It is listed in Securities and Exchange Commission of Pakistan
in 2006.
Dubai Islamic Bank is today a progressive, efficient, and customer focused institution. It has developed
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a wide range of consumer products, to enhance business and cater to the different segments of society.
Some schemes have been specifically designed for the low to middle income segments of the
population.
It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient
and efficient manner. More recently it has started Electronic Home Remittances Project. This project
introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's
branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives
have been taken, in terms of institutional restructuring, changes in the field structure, in policies and
procedures, in internal control systems with special emphasis on corporate governance, adoption of
Capital Adequacy Standards under Basel II framework, in the up gradation of the IT infrastructure and
developing the human resource. Dubai Islamic Bank has built an extensive branch network with 36
branches in Pakistan. The Bank's financial performance has been remarkable. In 2006, total assets are
estimated at Rs 8434280000, while deposits have grown to nearly Rs 4322621000. The increase in profit
was achieved through strong growth in core banking income. The Bank maintains a sound loan portfolio
diversified in nature to counter the risk of credit concentration.
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HISTORY OF DUBAI ISLAMIC BANK PAKISTAN LTD:
Thirty years ago Dubai Islamic Bank created history by becoming Worlds first Islamic Bank. Today
Islamic Banking has become one of the fastest growing economic sectors with over 300 financial
institutions; with assets estimated over at 300 billion US Dollar providing Islamic Financial Services.
Despite huge growth to the sector DIB is continued to be the pioneer and leader to date. Since its
inception DIB has evolved retail bank to a fully fledged bank catering to almost all the requirements of
the customers in providing to Shariah Compliant solutions locally and internationally. It has constantly
upgraded its services to individuals and companies who always remain a valuable asset.
By combining the best Islamic traditional values with high standards technology and innovation, DIB is
committed to comply with not only fully transactions of financial dealings. DIB is also committed to
provide customer-satisfaction oriented job.
For its outstanding performance and contribution for Islamic financing, DIB received the best Islamic
Bank award in the Middle East Award 2006; by both Euro moneys Islamic Finance Weekly and Gulf
Wealth Forum. DIB has also awarded the bank of the year 2006 Banker Awards.
DIBPL has started its operations since 2005. At that time the scale of business and number of branches
were very short. But just within the time period of five years, now DIB has an extensive network of
branches, a wide range of Islamic Compliant Products, well-managed communication system and good
return from operations.
NATURE OF THE ORGANIZATION:

Dubai Islamic Bank Pakistan Ltd. is a public Organization. It implements the policies of SBP. Its basic
objective is to maximize the profit. It has major impacts on Pakistan economy with special emphasis on
fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically
oriented products and services offered through its network of branches. It deals with Revenue, collection
and payments of salaries. It is a complete Islamic, retail and corporate bank as well.
The Dubai Islamic Bank is an Islamic institute which offers a variety of products according to the
Shariah principles and instructions. All the products and services are regulated by Shariah Board. If they
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find someone violating the rules, they penalize. The Dubai Islamic Bank makes different adjustments to
update business operations.
The Bank has also played an important role in financing the country’s growing trade, which has
expanded through the years as diversification took place. Dubai Islamic Bank Pakistan Ltd. maintains its
position as Pakistan's one of the premier bank determined to set higher standards.
Dubai Islamic Bank Pakistan Limited (DIBPL), commenced operations in 2006. Since then, DIBPL has
undertaken major initiatives to expand its branch network across the country. Under its consumer
banking division, the bank is offering state-of-the-art Shariah compliant products that effectively
compete with those being offered in the market by conventional banks. It also has expertise in providing
Retail, Private, Small and Medium Enterprises, Corporate, Investment Banking and Advisory services.
The Bank launched Pakistan's first Islamic Visa Debit Card and introduced financial products covering
Home Financing, Auto Financing, and Depository products. DIBPL has also introduced Priority
Banking and Internet Banking, both of which are being recognized as benchmark products in their
respective categories. Besides regular banking services, the Bank is committed to bringing foreign
investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced
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world renowned giants from the GCC to be part of Pakistan's economy. With short-term credit rating of
“A-1” and long-term credit rating of “A”, the bank continues to reaffirm its commitment to Pakistan
with new branches and absolutely Halal and Shariah compliant new products and services. DIBPL is
currently one of the most active players in the consumer autos and home finance industry with the
combined portfolio standing way above Rs 10 billion. DIBPL is operating through 100 branches located
in 30 cities across Pakistan as of, December 2012.The registered office of the bank is situated at Hassan
Chambers, DC-7, Block-7, Clifton, Karachi. DIBPL is 100% owned by Dubai Islamic Bank PJSC
(Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company
in Dubai.
ISLAMIC BANKING:
Islamic banking is banking or banking activity that is consistent with the principles of Shariah and its
practical application through the development of Islamic economics. As such, a more correct term
for 'Islamic banking' is 'Shariah compliant finance'. Shariah prohibits the fixed or floating payment or
acceptance of specific interest or fees (known as Riba or usury) for loans of money. Investing in
businesses that provide goods or services considered contrary to Islamic principles is also haraam. Allah
has clearly ordained the prohibition of Riba in the Glorious Quran. Verses [2:278-279] translate into:
278. O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are
Indeed believers.
279. If ye do not, take notice of war from Allah and His Messenger: but if ye repent, ye shall have
your capital sums; neither will you deal with others unjustly, nor shall you be dealt with unjustly.
Islamic banking has the same purpose as conventional banking: to make money for the banking institute
by lending out capital. But that is not the sole purpose either. Adherence to Islamic law and ensuring
fair play is also at the core of Islamic banking. Because Islam forbids simply lending out money at
interest (Riba), Islamic rules on transactions have been created to prevent this perceived evil. The basic
principle of Islamic banking is based on risk-sharing which is a component of trade rather than risk-
transfer which is seen in conventional banking. Islamic banking introduces concepts such as profit-
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sharing (Mudarabah), safekeeping (Wadiah),joint venture (Musharakah), cost plus(Murabaha), and

leasing(Ijara). In an Islamic mortgage transaction, instead of lending the buyer money to purchase the
item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while
allowing the buyer to pay the bank in installments. However, the bank's profit cannot be made explicit
and therefore there are no additional penalties for late payment. In order to protect itself against default,
the bank asks for strict collateral. The goods or land is registered to the name of the buyer from the start
of the transaction. This arrangement is called Murabaha. Riba gives birth to an economic system that is
unjust; one that favors the rich at the expense of the poor. Rather than reward for effort and
entrepreneurship with profit, the Riba based economic system rewards capitalists. Islamic Finance
attempts to create a fair economic system. It works on the principle of profit and loss sharing. Riba
(Interest) is strictly prohibited in all its forms and kinds. Islamic banks have to strictly comply with the
principles and rules of Shariah which prohibit outright any transaction involving alcohol, pork,
gambling, etc. Further, the Islamic modes of finance and investment used by these banks must fulfill the
basic conditions of these contracts to be considered Shariah compliant.
VISION MISSION
To be the leading Islamic Bank providing To provide diversified Shariah compliant
Shariah compliant financial services, by financial services and products through the
creating value for all stakeholders best of innovation, talent and operational
excellence while ensuring consistent
growth and profitability
VALUE OF DIBPL:
Trust
Communication
Innovation
Caring
One team
One Goal
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FUTURE PROSPECTS OF DIBPL
DIBPL remains committed to the interest of all stake holders including its employees, owners,
regulators and Pakistani nation. DIBPL has defined strategy on where and how want to proceed
in the years to come. With the implementation of the new ‘Core Banking Package’, DIBPL will
completely automate its functions which in turn will appreciably enhance work efficiency.
DIBPL will continue to diversify customer segments thereby increasing product offering. DIBPL
committed towards the employee’s empowerment / development will continue DIBPL believe
that a motivated and well trained work force is necessary to ensure sustenance and growth. On
the business side its main focus would be to reduce non-performing loans and increase deposits.
DIBPL remain committed to its Vision, Mission & core values and its strategy for the future
includes recovery efforts and revival of non-performing loans, deposit mobilization,
consolidation of loans, expense management and tapping into untapped markets by increasing
our network both domestically and internationally. Customer service will remain its main focus
of Operations management.
Finally DIBPL extend its appreciation to the bank’s staff for their commitment, dedication and
hard work in achieving these excellent results. DIBPL would like to express its sincere reverence
to the Board members whose valuable guidance has always enlightened in decision making.
Finally DIBPL would like to express its appreciation to stakeholders, regulators and its valued
customers for their support and continued confidence in DIBPL.
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WEAKNESSES OF THE ORGANIZATION WITH MAIN FOCUS ON

FINANCIAL MANAGEMENT
Customer Satisfaction: In DIBPL customer dealing is well, but during rush hour the customer
has to wait for a long time for their turn. It’s quite hard for a new customer or potential customer
to get the required information.
Poor record management and filing system: During my internship I observed that filing system
of branch is not good. When certain record is needed the staff has to struggle to find it out and a
lot of time is wasted.
Unequal distribution of work: Work is not equally distributed. On one hand some employee have
to work all day without relaxing while some others have nothing to do at all. This not only
creates confusion among employees but also hurting and disturbing for overall setup of the bank.
And above all it results in dissatisfaction among customers as well.
Difference between theory and practice: A vast difference exists between theory and practice and
DIBPL has written procedure but practical work done by employees is a bit different from
written procedures.
Bank duty to maintain secrecy: They don’t care about maintaining secrecy, especially during the
rush hours. They speak loudly about the account position and while getting clearance of cheque
the person can easily get the whole information from the ledge. The deposit clerk must be careful
while passing any cheque. In this regard another shortfall is in giving the information about the
balance on telephone.
Excessive paper work: It is notified that due to the lengthy procedure of paper work the bank
employee are over burdened. They are unable to give proper attention to the clients and face
difficulties in getting their job done. One reason for lengthy procedure and excessive paper work
in the bank is the lack of computerized technology.
More accounts fewer deposits: Efficient banking is one, which does not emphasize on number of
accounts but on greater amount of deposits. DIBPL is more interested in increasing its number of
account irrespective to its deposit.
Delegation of authority: Manager has very limited authority; he has to take the approval from his
management authority i-e. In case of advance he has to take the approval of general and regional
manager. The other problem is created, when the manager is not present in his office, the
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customer having to wait for hours. This discourages both customer and officers because they
have to suffer a lot.
Lack of specialized training: DIBPL does not provide adequate facility of specialized training to
their staff. Training is generalized rather than specialized. As the worker finishes his training, he
is inducted into a specific field without having great deal of knowledge about the field.
ROLE OF SHARIAH BOARD:
DIBPL strives to bring to its customers, ‘World Class Banking, the Islamic Way’. To ensure that every
transaction complies with Islamic Law, we have in place a ‘Fatwa & Shariah Supervision Board’,
comprising of scholars of the highest repute, with vast experience in the field of Islamic Jurisprudence,
economics and banking.
The ‘Fatwa & Shariah Supervision Board’ ranks above the Board of Directors and is empowered to
issue ‘Fatwas’ on any matter proposed before it by the different business units of the Bank. This
framework has made DIBPL an organization that practices Islamic finance in true letter and spirit.
Important Duties of the Shariah Board:
It is the source of expert knowledge on Islamic Principles (Including Fatwas).

It oversees the development of all products to ensure no Shariah repugnant feature arises.
It analyses unprecedented situations not covered by fatwa, in the Bank’s transactions to ensure
Shariah compliance.
It analyses contracts and agreements concerning the Bank’s transactions to ensure Shariah
compliance.
It ensures the immediate correction of breaches (if any) in compliance to Shariah.
It supervises Shariah training programmers for the Bank’s staff.
It prepares an annual report on the Bank’s balance sheet with respect to its Shariah compliance.
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MANAGEMENT TEAM OF DIBPL:
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ORGANIZATIONAL STRUCTURE:
In Dubai Islamic Bank, the head is called “Chairman” of the Bank. And after Chairman there
is Six Broad of Directors. Dubai Islamic Bank has Eleven Groups which control the working of the
Divisions, Wing, Department, Section and Regional of the Dubai Islamic Bank. In DIBPL,
“Department” is called “Wings”.
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ORGANIZATION HIERARCHY OF DIBPL:
I worked in Dubai Islamic Bank Pakistan Limited as an internee for two months. During internship, I
rotated in different departments where I learned about these departments. The branch manager monitors
the whole branch to develop efficiency and effectiveness. The different department's details are listed
below.
There are seven departments are operating in DIBPL. In deposits section, various kinds of deposits are
made in routine and reported to head office. The deposit section is very efficient and active. In
remittances section deals with external and internal remittances to facilitate the customers. Remittances
are transferred through pay order, bank draft and telegram transfer. In clearance department, cheques are
cleared through clearing house by using the facility of NIFT.
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In advances department, bank makes different kind of advances and offer attractive Islamic compliance
products to attract customers. In other departments, HR department functions the recruitment,
performance appraisal, training and other relevant jobs. In cash department, the collection and payment
of cash is made.
SWOT ANALYSIS:
Strengths:
It is the one of the first and leading Islamic bank.

DIBPL has strong financial stability and strong capitalization.
It is a most enthusiastic and qualified staff, to provide impeccable customer services.
Its website satisfies the need of their customer.
Being an Islamic Bank, DIBPL has a wide national network. As an emerging markets bank, it
has branches in all major cities of Pakistan with the facility of online banking, it is very easy for
its customers to transact all over the country.
DIBPL provides online banking service to satisfy customer’s needs. Online banking service
means that a customer can withdraw and deposit his money at any branch in the country. Where
this service is not present, cheque has to be presented only in that branch on which they are
drawn. But with this facility, a person has access to its funds at any branch of the bank.
The innovative service of Islamic Insurance called Takaful.
Weaknesses:
DIBPL deduct high charges for most of their services as compared to other banks is major
weakness.
Lack of advertisement of their services.
As DIBPL follows centralized system so system becomes time consuming.
The degree of satisfaction of employees was quite low. First of all, the pays are lower those
offered in other banks. Secondly, the employees are given targets that are too difficult to achieve.
This makes a job too stressful and tensed.
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Due to the dissatisfaction of staff and recession, there is high turnover among them. People who
find other alternatives do not stay with the bank. Therefore, the bank incurs loss in their training
and development.
Opportunities:
Growing demand of Islamic products and services

Coming up with the products for the SME to target the medium level customers
Doing business with the companies having Islamic mindset i.e. Islamic Financial Institutions
Increase branch network within the country
Growing Islamic finance market.
Threats:
Right now there are a few banks that are providing Islamic banking services in addition to
DIBPL. These banks include Bank Islamic, Al-Baraka Bank, Meezan Bank and some branches
of Bank Alfalah which are dedicated for Islamic Banking services.
Due to the increase in the conventional commercial banks, there is an increase in competition.
Also there is a lot of aggressive marketing by the competitor banks. This is also threat for
DIBPL.
MARKET ANALYSIS:
Dubai Islamic Bank Pakistan Limited is growing rapidly in Pakistan. This shows the success of its
various strategies. Various factors of marketing for DIBPL are:
Target Market
Marketing Mix
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Target Market:
The DIBPL is mainly focusing on individuals and SMEs. Small and medium sized companies are its
main customers. The reason behind focusing on corporate sector is that a single company can deposit a
large sum of money that is difficult to achieve by focusing on individual customers. It does not mean
that DIBPL is lacking the other side of the picture. It has also got individual customers. Corporate sector
constitute 80% of all the deposits of the bank. This is the reason DIBPL is focusing on corporate sector.
Due to this reason we see no advertisement of DIBPL in print and electronic media. Target marketing is
the basic step for rest of the strategies being developed.
Marketing Mix:
Marketing Mix includes four P‟s of marketing. These are:
Product
Price
Place
Promotion
Products and services provided by DIBPL have been earlier in this report. All the products and services
offered by DIBPL are purely Islamic. No other bank offers such services to the customers. Price means
that service charges of the bank. Charges are determined by the Schedule of Charges every year. Bank
provides quality services at very competitive charges. For example there are charges for the renewal of
ATM card, renewal of cheque books and cash withdrawals. The main factor to discuss is the promotion.
Promotion strategies consist of promotion mix. The promotion mix includes:
Advertising
Publicity
Sales Promotion
Personal Selling Advertising is paid and non personal communication of companies‟ message to target
customers. DIBPL has no focus of advertising. This is also a weakness of DIBPL, because its customers
are spending a lot of funds on advertising. Competitors are taking full advantage of it. As DIBPL is
offering products and services to individual customers, so they need to communicate their products and
services with people through print and electronic media. DIBPL has very effective personal selling
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teams. Their Financial consultants and Relationship managers convince corporate customers to an
account in the bank. This is competitive advantage of DIBPL. This is the reason due to which DIBPL
stands good in the market. Even without advertising and other communication methods DIBPL manages
to gain a good market share.
PRODUCTS OF DIBPL:
Products of bank include all those services which a customer can use effectively in his general and
business. Dubai Islamic Bank Pakistan Ltd. offers a wide range of banking services to public and private
sector corporations, partnerships, individuals and others.
Current Account:
DIBPL Current Account is a non-remunerative checking account, specifically appeals to businessmen
and salaried individuals who need to make frequent payments and deposits in their account. The Dubai
Islamic Current Account is an ideal low cost option for such customers. Based on the Wadiah contract,
the Dubai Islamic Current Account offers users safe keeping of their cash deposits against DIBPL‟s
guarantee to provide the depositor his funds on demand. However, the depositor permits DIBPL to use
or invest his money in its Shariah compliant investments and is neither entitled to investment profit nor
does the account holder bear any risk of loss. All entities including individuals, corporations, firms,
societies, clubs, government organizations, statutory bodies, public and private institutions can open
Current Account with as low as PKR 1000.\
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Saving Account:
Dubai Islamic Savings Account is a great investment option for depositors who wish to earn Halal
returns on their savings. By investing in the Dubai Islamic Savings Account, the depositor (fund
provider or (Rab-ul-Maal) authorizes DIBPL (fund manager or Mudarib) to invest his/her funds on the
basis of unrestricted Mudarabah contract according to the principles of Shariah. DIBPL invests these
funds in its Common Mudarabah Pool with other deposits and the shareholders‟ equity. The profit on
the Common Mudarabah Pool is distributed amongst the shareholders‟ and depositors on the basis of
agreed upon weightage which take into consideration the tenor, amount of deposit and profit payment
frequency of the account. The Savings Account is offered in Pak Rupees and US Dollar, with as low as
Rs. 1000 initial deposit.
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Saving Plus Account

Another type of account which DIBPL is offering is saving plus account. On this type of account DIBPL
is giving profit on comparatively higher rates than regular.
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Saving Special Account

This is another type of account is offering by DIBPL to facilitate its valued customers. This type of
account has some special characteristics as compared to regular and plus. The profit margin is higher
than other types of accounts
Fixed Deposit:
DIBPL Fixed Deposit Account offers the ideal mix of long and short term benefits to depositors seeking
attractive and Halal returns on their savings. With a history of high profit payouts Dubai Islamic Fixed
Deposit Account is an excellent investment vehicle for depositor. By investing in the Dubai Islamic
Fixed Deposit Account, the depositor authorizes DIBPL to invest his/her funds on the basis of
unrestricted Mudarabah contract according to the principles of Shariah. DIBPL invests these funds in its
Common Mudarabah Pool with other deposits and the shareholders‟ equity. The profit on the Common
Mudarabah Pool is distributed amongst the shareholders‟ and depositors on the basis of agreed upon
weightage which take into consideration the tenor, amount of deposit and profit payment frequency of
the account.
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OTHER ACCOUNTS OFFERED BY DBIPL:
Junior Account:
DIBPL is the first Bank in Pakistan to enable young minor to conduct Riba-free banking. It is a unique
opportunity for you to not only understand the value of saving money from early age, but also inculcate
the importance of Islamic Banking. A junior account can be opened with as little as Rs. 5, with
maximum age limit of 18. If a customer is at the age of 15 or above, he can get his Islamic Debit Card.
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E-Saving Account:
DIBPL gives the power to control your financial future from anywhere and anytime. E-Saving Account
offers you a banking experience like never before. Benefits of E-Savings Account includes
Online Account opening, Higher profit rates, Free internet and Mobile banking, 24/7 phone banking. E-
Saving account is for Pakistani residents, offered in PKR, with minimum balance requirement of Rs.
10,000, with no issuance of Cheque Book.
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Cash Manager Account:

At DIBPL, goal is to offer solutions that help one to achieve his business plan in a convenient and
hassle-free manner. DIBPL Cash Manager Account helps in managing business transactions in a fast
and simple manner. Through Cash Manager Account, manage the payment of their employees, free
collection services, internet banking facility, Cash pick-up service, long banking hours till 8:00 pm,
lockers facility.
Investor Portfolio Securities (IPS) Account:

DIBPL IPS account enables its customers to invest in highly lucrative Shariah complaint Government-
backed Ijara Sukuk. Not only does the DIBPL IPS Account enable to purchase and sell Ijara Sukuk, it
also gives the convenience of maintaining portfolio of Ijara Sukuk at DIBPL. Moreover, one can
transfer his existing holding of Ijara Sukuk to your IPS account at DIBPL from any other bank.
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SERVICES OF DIBPL:
Services are output of the firm, which are in intangible form and the back bone of any organization to
earn profit. However, there are some basic services which DIBPL at present offers to his customers
include:
Receipts of customer's deposits

Collection of his cheques drawn on other banks
Making payments through cheques drawn on it
Making remittances
Foreign trade service
International Banking
Dubai Islamic Bank Pakistan Ltd. is at the forefront of international banking in Pakistan, which is
proven by the fact that DIBPL has its branches in all of the major financial capitals of the world.
Additionally, we have recently set up the Financial Institution Wing, which is placed under the Risk
Management Group. The role of the Financial Institution Wing is: -
To effectively manage DIBPL exposure to foreign and domestic correspondence manage the monetary
aspect of DIBPL’s relationship with the correspondents to support trade, treasury and other key business
areas, thereby contributing to the bank’s profitability.
DEMAND DRAFTS:
It is a safe, speedy and reliable way to transfer money; customers can now purchase DIBPL’s Demand
Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a
Demand Draft from a bank branch.
MAIL TRANSFERS:
Money is safely and quickly moved by using DIBPL Mail Transfer service. And DIBPL also offered the
most competitive rates in the market.
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PAY ORDER:
DIBPL provides another reason to transfer money using its facilities. Pay orders are a secure and easy
way to move money from one place to another. And as usual, charges for this service are
extremely competitive.
TRAVELER'S CHEQUES:
Negotiability: Pak Rupees Traveler’s Cheques are a negotiable instrument.
Validity: There is no restriction on the period of validity.
Availability: At 36 branches of DIBPL all over the country.
Encashment: At all branches of DIBPL.
Limitation: No limit on purchase.
Safety: DIBPL Traveler’s Cheques are the safest way to carry money.
LETTER OF CREDIT:
DIBPL is committed to offering its business customers the widest range of options in the area of money
transfer. In a commercial enterprise Letter of Credit service is just what customers are looking for. With
competitive rates, security, and ease of transaction, DIBPL Letters of Credit are the best way to do
business transactions.
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TRADE FINANCES & OTHER BUSINESS LOANS
CORPORATE FINANCE:
Working Capital and Short Term Loans:

DIBPL specializes in providing Project Finance – Export Refinance to exporters Pre-shipment and Post-
shipment financing to exporters – Running finance – Cash Finance – Small Finance – Discounting &
Bills Purchased – Export Bills Purchased / Pre-shipment.
Medium term loans and Capital Expenditure Financing:

DIBPL provides financing for its clients’ capital expenditure and other long-term investment needs. By
sharing the risk associated with such long-term investments, DIBPL expedites clients’ attempt to
upgrade and expand their operation thereby making possible the fulfillment of our clients’ vision. This
type of long term financing proves the bank’s belief in its client's capabilities, and its commitment to the
country.
Loan Structuring and Syndication:

Dubai Islamic Bank Pakistan Ltd. leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors. Because syndicate partners
understand the asset criteria, DIBPL help borrowers meet substantial financing needs by enabling them
to reach the banks most interested in lending to their particular industry, geographic location and
structure through syndicated debt offerings. Syndication capabilities are complemented by capital
strength and by industry teams, who bring specialized knowledge to the structure of a transaction.
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Cash Management Services:

With DIBPL Cash Management Services (in process of being set up), the customer’s sales collection
will be channeled through networking of DIBPL branched spread across the country. This will enable
the customer to manage their company’s total financial position right from desktop computer. They will
also be able to take advantage of outstanding range of payment, ejection, liquidity and investment
services. In fact, DIBPL is committed to provide everything, which takes to manage cash flow more
accurately.
SHORT TERM INVESTMENTS:

DIBPL now offers excellent rates of profit on all its short term investment accounts. Whether the funds
are invested for 3 months or 1 year, DIBPL’s rates of profit are extremely attractive, along with the
security and service only DIBPL can provide.
EQUITY INVESTMENTS:
DIBPL has accelerated its activities in the stock market to improve its economic base and restore
investor confidence. The bank is now regarded as the most active and dominant player in the
development of the stock market. DIBPL is involved in the following:
Investment into the capital market

Introduction of capital market accounts (under process)
DIBPL’s involvement in capital markets is expected to increase its earnings, which would result
in better returns offered to account holders.
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MURABAHA:
Murabaha is a sale contract where the seller discloses its cost and profit to the buyer. Murabaha to the
purchase ordered means a sale wherein the bank, upon request by the customer, purchases an item from
another party and sells the same after getting its possession to the customer on cost plus profit on spot or
deferred payment basis. Our Corporate customers utilize this product mainly to fulfill their raw material
procurement requirements.
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ISTISNA CUM WAKALA:
Istisna’ is a contract of sale of specified items to be manufactured or constructed and delivered by the
manufacturer or builder (contractor) to the customer upon completion. Islamic banks after getting the
delivery of the manufactured goods, sell the goods normally, through their agents in the market. Our
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corporate customers who are in manufacturing business utilize this product to meet various working
capital needs.
TIJARAH:
Tijarah is used for providing financing facility in transactions where final / transformed goods are
available for sale. This facility enables our corporate customers to sell their finished goods, meet their
working capital requirements and enjoy the benefits of cash sales. Tijarah facility can be availed by
trading and manufacturing concerns and can also be used to facilitate customers to convert their interest
based financing facilities to Islamic banking.
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WAKALA ISTITHMAR – LOCAL SALES:
Wakala Istithmar is an Investment Agency whereby one party (principal – bank) appoints another party
(customer) as its agent, to invest the capital in agent’s working capital.
RUNNING MUSHARAKAH:
Running Musharakah is available to our corporate customers as substitute to Conventional Banking

Running Finance Facility for providing them the flexibility of Running Finance in a Shariah Compliant
manner. Clients now can issue cheques and withdraw cash as per their needs within the limit of the
Running Musharakah provided by the bank. They can deposit their collection in the Running
Musharakah Account whenever they receive it. The customers availing our Running Musharakah
facility are only required to pay profit to the bank for the net capital extended under Running
Musharakah Facility to the clients.
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SHIRKAT-UL-MELK CUM IJARAH:
It is a combination of two contracts namely Musharakah and Ijarah. As per this product, the Bank and
the customer form a Musharakah to purchase the asset. After this the bank leases its share to the
customer for a pre-specified term through Ijara Agreement. This Shariah Compliant long term facility is
utilized by our customers to finance capital expenditure, plant expansion, BMR etc.
DIMINISHING MUSHARAKAH:
Diminishing Musharakah is a form of partnership, which ends with the complete ownership of a partner
(customer) who purchases the share (in the form of Units) of another partner (Bank) in that project by a
redeeming mechanism agreed between both of them. This product is most commonly used for the
financing of fixed and movable assets, long term projects, etc.
SUKUK:
IJARAH BASED SUKUK

– Based on financial lease concept, involves ‘sale and lease-back’ of assets with resale of assets for
principal redemption. Transfer of the legal right to enjoy the asset to a funding company in exchange for
a rental payment who also issues the Sukuk
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MUSHARAKA BASED SUKUK

– Based on ‘joint-venture’ concept involving two or more Musharakah Partners (Obligor and Issuer).
Musharakah is a contractual agreement and need not have a distinct legal personality. Musharakah
Partners are required to invest capital into the Musharakah pool for the purposes of generating a return;
one partner (Obligor) to act as Managing Partner.
FLEET FINANCE:
Our Corporate customers can also avail Fleet Financing facility through the Corporate Banking
platform. The customers can utilize this facility for providing cars of different make and models to their
staff or to strengthen their logistical support. This one-stop shop facility operates under Shirkat-Ul-Melk
cum Ijarah model of financing.
IMPORT MURABAHA:
Import Murabaha is a product, used to finance a commercial transaction which consists of purchase by
the Bank (generally through an undisclosed agent) the goods from the foreign supplier and selling them
to the customer after getting the title to and possession of the goods. Murabaha financing is extended to
all types of trade transactions i.e., under Documentary Credits (LCs), Documentary Collections and
Open Account.
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ISLAMIC EXPORT REFINANCE:
Our export oriented customers can avail this facility to obtain financing at subsidized rates in a Shariah
Compliant manner. This facility is extended by DIB with support from State Bank of Pakistan in order
to facilitate our export based customers.
WAKALA ISTITHMAR – PRE MANUFACTURING:
This is an Investment Agency whereby one party (principal – bank) appoints another party (customer) as
its agent, to invest the capital provided by the agent. The target sector for this product is export oriented
industries. It facilitates our export based customers to obtain financing against their future export orders.
This facility can be availed under FE-25 or Islamic Export Refinance Scheme.
WAKALA ISTITHMAR – POST MANUFACTURING:
This is an Investment Agency whereby one party (principal – bank) appoints another party (customer) as
its agent, to invest the capital provided by the agent. The target sector for this product is export oriented
industries. It facilitates our export based customers to obtain financing against their manufactured export
merchandised ready to be shipped. This facility can be availed under FE-25 or Islamic Export Refinance
Scheme.
LETTERS OF CREDIT:
Our Corporate Banking offers the complete suite of trade services to facilitate our customers. We are
geared to handle all customer requirements for Letters of Credit. Dubai Islamic Bank has relationship
arrangements with leading banks in Pakistan and around the globe which enables acceptance of LCs
issued by DIBPL at all major trade destinations.
LETTERS OF GUARANTEE:
At corporate banking, we handle issuance of Letters of Guarantee on behalf of our customers. We issue
various types of guarantee instruments such as Bid Bonds, Performance Bonds, Advance Payment
Bonds and Payment Bonds etc. as per the requirements of various public and private entities.
REGISTERED IMPORT CONTRACTS:
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Our customers can also utilize our services for issuance of registered Import Contracts to fulfill their
import requirements. The customers do not require separate limits for issuance of Bank Contracts from
our counters.
COLLECTION AND NEGOTIATION OF EXPORT DOCUMENTS:
We offer all export related services including collection of export documents and processing of
proceeds. We also provide negotiating services to our export oriented customers under Shariah approved
product structures.
FORWARD COVER:
Our customers can protect themselves from exchange rate risks arising out of volatile currency
movement scenario using our Forward Cover offering. A Shariah Compliant forward exchange contract
between bank and its customer is where rate of exchange is fixed immediately, for the buying and
selling of one currency for another, for delivery at an agreed future date.
BANK TAKAFUL SERVICE (INSURANCE):
The word Takaful means to guarantee; to help; to take care of one’s needs. Takaful is a system based on
the principle of Taawun (mutual assistance) and Tabarru (voluntary contribution), where risk is shared
collectively by a group of participants, who by paying contributions to a common fund, agree to jointly
guarantee themselves against loss or damage to any one of them as defined in the pact. Takaful is
operated on the basis of shared responsibility, brotherhood, solidarity and mutual cooperation.
Al-Islamic Cash cover:

DIBPL presents Al-Islamic Cash Cover –a product of Pak-Qatar General Takaful that offers coverage
against loss of cash resulting from armed hold-up, mugging and/or forced deprivation of cash following
its withdrawal. This agreement covers only cash personally withdrawn by the customers form his own
account through any I-Link machine or over the counter at any DIBPL branch in Pakistan.
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The coverage of the Takaful is restricted to 1.5 kilometers radius or 30 minutes after the withdrawal,
whichever occurs first. Any robbery/forced deprivation incident occurring after 20 minutes from the
time of cash withdrawal or outside a radius of 1.5 kilometers from the cash withdrawal
point/ATM/branch would not be covered by the Takaful Company.
Al-Islamic Takaful:
DIBPL is proud to introduce Al-Islamic Saving & Takaful Plan in collaboration with Pak Qatar Family
Takaful Ltd. (PQFTL) Al-
Islamic Saving & Takaful Plan is a Shariah compliant alternative to conventional insurance, offering a
unique combination of saving, investment and protection. The Al-Islamic saving &Takaful Plan offers
one’s peace of mind and takes care of the future of one’s loved ones by offering a savings plan and
providing Takaful coverage in the event of death to one’s beneficiaries. So rest assured, with Al-Islamic
Saving and Takaful Plan, one’s future plans are in safe hands.
As an individual you have many dreams…

A college education for your child from a prestigious university
A dream wedding for your beloved daughter
Your spiritual journey to perform Hajj
A comfortable retired life with enough savings to take care of you and your loved ones
Any other financial objectives you may want to achieve there’s nothing better than the Al-
Islamic Saving & Takaful Plan to fulfil your dreams the Islamic Way! Based on your saving
capacity, Al-Islamic Saving & Takaful Plan offers you a range of investment options to suit your
risk profile, with most flexible payment options.
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CONSUMER FINANCING:
Home finance:
Dubai Islamic Home Finance is the key to your dream home and we are eager to put this key in
your hands. Using the Musharakah cum Ijara model, the Bank enters into a partnership with you and
helps you in fulfilling your dream of owning a home quickly, conveniently and in a fully Shariah
compliant manner. Whether you want to buy, renovate or simply wish to switch from your present home
finance with any other bank, DIBPL‟s would be the best Shariah compliant alternative. Currently Dubai
Islamic Home Finance is offering three product variants:
Home Purchase.
Purchase of undivided share (Home Renovation).
Purchase of undivided share of property from other bank (Balance Transfer)
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Auto Finance:
Dubai Islamic Auto Finance offers a world class auto finance facility that enables you to get a car
quickly, conveniently and in a fully Shariah compliant manner. Using Musharakah cum Ijara model to
finance your car, steer yourself towards peace of mind and fulfillment of your desire. Features include:
Riba free
Quick processing
Fully Shariah compliant
Low monthly instalments inclusive of lowest Takaful/insurance rate & trackers
Business Finance:
Dubai Islamic Business Finance is a Shariah compliant term finance facility which provides a complete
solution for fulfilling the financial needs of your business. There are so many reasons that make Dubai
Islamic Business Finance the right choice!
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The only product of its kind available in the market

100% Shariah Compliant
Minimum financing amount of Rs. 500,000
Maximum financing of up to Rs. 20 million
Fastest processing time
Affordable monthly payment plan
Financing up to 70% of your property value
Finance Enhancement option as per the applicable terms
Early & Partial settlement option as per the applicable terms
Tenor Rescheduling option as per the applicable terms
CORPORATE BANKING:
DIBPL provides a wide range of services specifically designed to assist Pakistani businesses.
Cash Management:
DIBPL Cash Management offers comprehensive end-to-end Shariah compliant solutions to meet cash
flow requirements. One can reduce turnaround times for your accounts receivables, better manage
your payables, and benefit from our value-adding MIS reports. GL reconciliation would have never been
easier for you.
Collections:
DIBPL is an expert at facilitating the collection of sales proceeds and converting your Receivables into
Funds Available. You are provided the facility of maintaining a single concentration account.
Collections from all over Pakistan (cash/ cheque/ pay order/ demand draft) will be credited to this main
account via DIBPL's real time online branch network.
Bulk & Data Processing:

DIBPL has formed project-to-project alliance with NIFT on processing and collection. DIBPL will
perform the role of the financial institution while NIFT will provide the expertise in the area of bulk
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processing. National Institutional Facilitation Technologies has 10 years of experience in this area and
has previously done such projects for SSGC and LESC successfully. A deal with PTCL and KESC has
been inked for provision of this service.
Payment Product:
The product facilitates clients in managing their outflow of funds. The outflows can be through Pay
Order/Demand Draft or by way of electronic cheques issued at the client’s office.
Depository Services / Liquidity / Funds Management:

In DIBPL's suite of Shariah approved Investment Depository Products, your organization will certainly
find just the right combination of attractive returns and enhanced liquidity that it requires. Enhance your
funds management like never before.
Foreign Exchange Remittances:

The Cash Management Group at DIBPL is adept at handling outward/inward remittances through State
Bank of Pakistan. Be it money transfers within Pakistan or outside, DIBPL will have a product to meet
your needs safely and efficiently. The Bank's extensive network of correspondent banks in all major
countries of the world is all that your business will require.
Designated Bank Services:

Designated banking service such as managing dividend payouts on behalf of corporate clients is also
available.
Cash-In-Transit Services:
DIBPL can arrange for its clients a secure pick up of cash from the customer’s door step for deposit at
DIBPL's nearest branch.
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Trade Related:
DIBPL offers a range of solutions to help customers in their trade transactions.
DIBPL‟s Sales and Service Outlets have the infrastructure in place to ensure that customers‟ documents
are processed accurately and in the fastest possible time.
Import Murabaha:
Import Murabaha is a product, used to finance a commercial transaction which consists of purchase by
the Bank (generally through an undisclosed agent) the goods from the foreign supplier and selling them
to the customer after getting the title to and possession of the goods. Murabaha financing is extended to
all types of trade transactions i.e., under Documentary Credits (LCs), Documentary Collections and
Open Account.
Wakala Istithmar Facility (Exports):

A unique structure tailor-made for the exporters of the country, the Wakala Istithmar facility which has
been developed under the direct guidance of Shariah to meet the working capital requirements
of exporters and local manufacturers speaks volumes about our Shariah expertise and edge in bringing
new Shariah compliant products to the market for promotion of Islamic banking and rid ding those who
desire Halal income from interest-based financing.
Wakala Cum Istisna’a Facility (Local Supplies):

Istisna’a is a contract for manufacturing or construction whereby the manufacturer sells to the buyer,
goods of specific description, at a fixed price, which the manufacturer shall make from raw material of
its own and deliver to the buyer at a future date. Istisna’a cum Wakala is a two-leg short-term trade
finance solution which enables a manufacturer to fulfill his payment obligation under a documentary
credit presentation and allows time for the goods to be cleared, manufactured and stocked. Once the
goods are delivered to the buyer, the customer then sells the goods, in its capacity as the agent of the
bank to creditworthy and trusted buyers and realizes the sale proceeds on behalf of the Bank. Such
finances are offered in conjunction with L/Cs to corporate customers under Wakala Istisna’a facility.
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Guarantee:
A guarantee is issued by DIBPL (the guarantor) on behalf of its customer (the applicant) in favor of a
third party (the beneficiary), for fulfillment of specifically defined contractual and/or financial
obligations of the applicant. If the obligations are not fulfilled by the applicant, the guarantor will pay up
to a certain amount to the beneficiary on non-performance of the obligations by the applicant.
Investment Banking:
With its team of seasoned professionals, DIBPL has become the Investment Bank of choice for local and
regional clients in a short span of time. DIBPL leverages the regional expertise and local knowledge to
create an efficient blend of solutions for our customers.
DIBPL‟s Investment Banking provide its clients with a unique combination of expertise, broad range
of investment banking/financial services and access to top regional decision makers. DIBPL derive
strength from our team that has unrivalled experience in dealing with the largest M&A, Advisory and
Fundraising transactions in the country.
DEPARTMENTS IN DIBPL:
During my internship I have worked in various departments of bank. The reason for selecting DIBPL
was that it is among those few banks which performed remarkably well in less time and grabbed the
market share with its products, services and different banking experience.
Cash Department
Clearance Department
Advances Department
Remittance Department
Deposits Department
Foreign Exchange Department
Privilege Banking Department
Compliance Department
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Human Resource Management Department

Information Technology Department
Islamic Banking Department
CASH DEPARTMENT:
The money which either comes or goes out from the bank, its record should be kept. Cash department
performs this function. The deposits of all customers of the bank are controlled by means of
ledger accounts.
Payment is a banker’s primary contract to repay money received for this customer’s account usually by
honoring his cheque. Cash Closing and opening at the start and end of the day is maintained by
operations department.
Cash department performs the following functions;
Receipt
The money, which either comes or goes out from the bank, its record should be kept. Cash department
performs this function. The deposits of all customers of the bank are controlled by means of ledger
accounts. Every customer has its own ledger account and has separate ledger cards.
Payments
It is a banker’s primary contract to repay money received for this customer’s account usually by
honoring his cheque.
Types of Cheques
Some specific types of cheque are being entertained in the clearing department of DIBPL.
1. LOCAL CHEQUE
By local cheque we mean collection of cheque from the banks which are the members of the
clearinghouse and which are located within the city.
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2. OUT STATION CHEQUE

By out station cheque we mean collection of cheque from the banks which are situated outside the city.
It means that presenting bank and the bank on which the cheque is drawn are not situated in the same
city.
CLEARANCE DEPARTMENT:
A clearing house is a platform for commercial banks set up given below for the purpose of interchange
and settlement of credit of different cheques. In Pakistan, the clearing system is operated by the NIFT.
The easy, safe and most efficient way is to offset the reciprocal claims against the other and receive only
the net amount owned by them. This facility of net interbank payment is provided by the clearing house.
Clearing may inward or outward clearing. When a customer of DIBPL deposit a cheque of other bank in
his account, that has to go through outward clearing and when a issues a cheque on party which has
account in other bank, clearing would be inward.
The function of clearinghouse is performed by the central bank of a country by tradition or by law. In
Pakistan, the clearing system is operated by the SBP. If SBP has no office at a place, then NBP, as a
representative of SBP act as a clearinghouse.
The easy, safe and most efficient way is to offset the reciprocal claims against the other and receive only
the net amount owned by them. This facility of net interbank payment is provided by the clearinghouse.
The representatives of the local commercial banks meet at a fixed time on all the business days of the
week. The meeting is held in the office of the bank that officially performs the duties of clearinghouse.
The representatives of the commercial banks deliver the cheques payable at other local banks and
receive the cheques drawn on their bank. The cheques are then sorted according to the bank on which
they are drawn. A summary sheet is prepared which shows the names of the banks, the total number of
cheques delivered and received by them. Totals are also made of all the cheques presented by or to each
bank. The difference between the total represents the amount to be paid by a particular bank and the
amount to be received by it. Each bank then receives the net amount due to it or pays the net amount
owed by it.
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1. In-word clearing Books:

The bank uses inward clearing register for the purpose of recording all the details of the cheques that the
other banks have issued on the bank.
2. Out-Word Clearing Books:

The bank uses outward clearing register for the purpose of recording all the details of the cheques that
the bank has delivered to other banks.
ADVANCES DEPARTMENT:
DIBPL give loans to the borrowers for different purposes. These loans are given for various sectors for
different periods. Small Finance, Cash Finance, Personal Loans, Demand Finance, Running Finance,
Corporate Finance, Export Import Financing, House Building Finance.
REMITTANCE DEPARTMENT:
Another important department in the bank is remittances. People send their money to the other persons
and organizations through various way i.e. Bank draft, Telegraphic Transfer, Mail Transfer, Coupons,
Govt. Draft and Western Union Money Transfer etc. It works both inward and outward.
DIBPL offers the following forms of remittances.
Demand Draft
Telegraphic Transfer
Pay Order
Mail Transfer
Safe custody of specimen signature book
Preparation of periodical statements
Any other work/ duty assigned by manager
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DEPOSITS DEPARTMENT:
Customers keep their savings in PLS Saving Accounts and businessmen save their money in bank
Current Accounts. DIBPL gives profit on saving accounts and special saving accounts.
FOREIGN EXCHANGE DEPARTMENT:

This department mainly deals with the foreign business. The main functions of this department are:
L/C dealing.
Foreign currency accounts dealing.
Foreign Remittance dealing.
DIBPL is committed to offering its business customers the widest range of options in the area of money
transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking
for. With competitive rates, security, and ease of transaction, DIBPL Letters of Credit are the best way
to do your business transactions
This department deals with the foreign currency accounts which mainly include dollar account, euro
account etc.
PRIVILEGE BANKING DEPARTMENT:
Online Banking
This department is functioning only in online branches in the bank. This is a fast track banking system in
modern banking. DIBPL is also trying to enhance this facility for their customers.
Utility Services
Keeping in view the difficulties faced by general public DIBPL has taken the initiative to provide
service for collection/receipt of utility bills on behalf of WAPDA, Sui Gas and PTCL from 9.00 am to
5.00 pm all the branches throughout the countries are observing this practice to ease the long queues
lined-up at the counters of banks.
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COMPLIANCE DEPARTMENT:
Role of branch compliance department is to reconcile the prescribed frequencies, investigate long
pending reconciliation item, and ensure correct treatment every half year and clearing system service
branch-in major cities. Internal control is the integration of the activities, plans, attitudes, policies and
efforts of the people of the bank working together to provide reasonable assurance that the organization
will achieve its objectives and mission.
HUMAN RESOURCES MANAGEMENT DEPARTMENT:

Human Resources Management Department works for the betterment of the employees. Enhances skills,
training management, service benefits, wages, medical facilities, staff loans are basic functions of this
department.
INFORMATION TECHNOLOGY DEPARTMENT:

Bank’s data collection and information system run by Regional Data Collection Center. This department
manages staff training programs regarding computer.
ISLAMIC BANKING:
The year 2005 marked the first year of Islamic banking operations. During the year under review, in
addition to active participation in various Sukuk transactions, DIBPL has extended its Islamic Banking
Operations Network.
UTILITY BILLS ACCEPTANCE:

DIBPL accepts the utility bills of KESC, PTCL and SSGC on the behalf of the respective companies.
SSGC slabs are sent to Tameer Micro finance bank to further process while KESC and PTCL slabs are
sent to NIFT.
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ACCOUNT OPENING AT DIBPL
When a customer comes to open his account, he has to fill an Account Opening form (AOF). New
customer also signs his/her signature on Specimen card for further transactions with the banks, and also
signs the Bank Service Agreement (BSA).
“Verisys” is a verification system started by NADRA on the CNIC of the new account opener. A
“Verisys” tells, that whether the candidate is a Pakistani citizen or not and all the information written in
account opening form are true or not by matching the information to the database of NADRA. SBP and
World check are checked to ensure that new customer is not in the blacklist of State Bank defaulter or
his name is not in the any terrorist organization. His job ID card’s photocopy and company’s letter on
letterhead is taken in case if customer is employed. The documents required for account opening are as
follows:
Filled Account Opening Form (AOF)

Banking Service Agreement signed (BSA)
Signed Specimen card.
ATM card form filled.
Other than CNIC signature form
NADRA Verification
World check list and State Bank list
Job Card/ID card/Company letter
Telephonic verification report
The account opening process is completed by Customer Relation Officer (CRO), by scanning all the
documents and sent to Centralized Account Opening Department. Account Number is received from
CAOD, after Department checks all the documents and allocates the unique number (Account
Number). After opening an account, Letter of thanks is sent to the account holder directing him to
collect the checkbook in person after receiving the letter. All the documents are put in jacket in safe
place for any further reference in the future. Check book and ATM card is issued to new account holder
in 3-4 days time. And pin code of ATM card is received by branch in 4-5 days. Account holder,
himself/herself, collects the check book from the branch.
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STRUCTURE OF FINANCE & ACCOUNTS DEPARTMENT
Accounts department is a backend department at Dubai Islamic Bank,-10 Markaz; Islamabad performs
the following Accounting Operation:
Reports
It generates reports like Statement of Account Activity (a report on the activity of all
accounts), Statement of Affairs (a report on the assets and liabilities), Statement of Foreign Exchange (a
report on the foreign exchange currencies at the bank) and Statement of Profit and Loss (a report on the
income and expenditures of DIBPL). These reports can be generated at daily, weekly, monthly, quarterly
or yearly basis as required by the bank.
Income and Expense

The department also needs to calculate the revenues and expenses, control expenditure and forecast
profits every month.
Budget
Formulation of yearly budgets & targets in consultation with the branch manager is also done by the
accounts department.
Activity Checking
Daily activity checking and monitoring is done by the accounts department of the whole bank.
Storage of Records
Accounts Department also has the duty to store vouchers and system generated reports.
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Payments
The accounts department is responsible to pay vendors on behalf of the bank with authorization from the
branch manager. It also has to amortize large payments and calculate depreciation of branch assets.
The role of financial managers in establishing relationship:
This is a senior role and the Relationship Manager will manage a portfolio of complex borrowing
corporate clients as well as being the primary point of contact for the banks relationships with the Hedge
Fund Sector. The role will report to the Head of Corporate Banking.
The ideal candidate will maximize opportunities to strengthen and leverage existing relationships as well
as continue to maintain and ensure high levels of customer satisfaction and retention all the while
generating new recommendations. The successful candidate will be experienced in developing growth
plans and expanding the divisions borrowing and non-borrowing relationships within the hedge fund
sector.
Strong working knowledge of commercial banking products, loan agreements, security and other credit
requirements, particularly with respect to the mutual and hedge fund sectors is preferred.
Essential qualifications include at least 10 years banking experience with at least 5 years in a direct
commercial customer contact role: in depth experience in structuring financing transactions with the
mutual and hedge fund sectors; experience in structuring financing transactions with the property sector
will be considered an asset. Financial manger in establishing relationship always gives priority of his
organization these benefits:
Maximization of profit.
Earnings per share maximization.
Increase of sale
Welfare
Reduce in cost
Maximization of shareholder’s wealth.
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Use of Electronic data in Decision-making:
In today’s contemporary business, critical and timely decision making is a must and important too.
Today’s bank use sophisticated software’s that not only help in operations but also improves decision
making by providing different reports, which can produced at different periods of time, that can help
employees at every level of the banks administration.
Technical Methods that Affect the Industry:
The banking industry of Pakistan is at the forefront of modernizing its daily operations by introducing
the latest technologies in its operations. Some of the technical methods that are used and affect the
banking industry are as follows:
Advanced technological products and services

Automation of operational tasks
Decision making tools
Advanced technological products and services:
Automatic Teller Machines (ATM) and ATM cards have been the biggest innovations that have simply
changed the way people today are now making their personal transaction. With ATM cards, people can
take out money from their accounts at any time, from any bank that they want to, at their convenience.
ATM cardholders can take money out of their accounts, from any ‘1 link’ network ATM, the largest
ATM network of the country. Other ATM networks include ‘Mnet’ and ‘Cirrus’. Today all banks are
members of ‘1 link’, while most of them are members of Mnet and Cirrus.
Internet Banking is another major technological product introduced by different banks of Pakistan. With
the help of internet banking, customers with the convenience of their own personal computers can
transfer money from their accounts, view their balances and a lot more.
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Automation of operational tasks:
Technical advancements have also impacted the daily operations of banks in Pakistan. Online transfer of
money between branches has increased the efficiency of exchange of money between different account
holders of the same bank.
Simple tasks such as balance inquiry and bank statements have become as easy as a click of a button
with highly sophisticated information systems.
All banks today have their own information systems that they can use in almost all departments like
clearing, account opening, car leasing and remittances.
Innovation:
Innovation is a must in modern times, as it will help banks to compete in today’s highly technologically
advanced industry. Some of the innovations that the banking industry is looking forward are:
More advanced means of connectivity between branches through better and advanced software and
hardware to maintain connections with banks in remote areas and during natural calamities in Pakistan.
These might include better connection through Wi-Fi or WiMax, both new technologies.
More advanced information systems in banks that are more secured than before to eliminate any chances
of fraud and which are even more user friendly to help employees to use them not only to make critical
decisions but also satisfy customer need in a more timely manner.
Advancements in online transfer from inter branch to an even more helpful interbank transfers.
Automation of simple operations task that will not only improve efficiency but also reduce costs like
stationery and courier services, like automation of check books etc.
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PROS AND CONS OF ISLAMIC MODES OF FINANCING:
MUSHARAKAH:
Pros:
The financing by Musharakah with its flexibility and its participatory vocation has several advantages
and for the Islamic Bank and for the economic operators. For Islamic Bank, this formula offers
opportunities for long- and / or medium-term investment of its resources.
It can thus constitute a source of regular and consistent income which will enable it to provide its
depositors and shareholders with a fairly attractive rate of remuneration.
In addition to the one-off financing of short-term commercial transactions (notably for resale in the state
or for import-export) and the acquisition of participation, Musharakah also presents itself as a form of
long- and medium-term credit. In this respect, it is the most appropriate way of financing the needs of
business start-up and development cycles both in terms of capital formation and / or capital growth and
the acquisition and / or renovation of equipment. Also, the Musharakah is much sought after by
promoters for the creation of small and medium enterprises in the form of companies of various forms.
For economic operators (partners), the principle of risk sharing makes Musharakah an attractive source
of financing. The remuneration of the Bank, far from constituting a fixed financial expense, is a variable
contribution directly linked to the operating result. In the event of a deficit, Not only can the Bank not be
entitled to any remuneration but it is also obliged to bear its share in the loss in its capacity as partner.
That is to say the importance of the study of the risk and profitability of the projects and operations
proposed for this type of financing.
The Musharakah of decreasing type allows the Islamic Banks to grant to the holders of public contracts
(or others), advances on markets by means of a division of the margin released on the costs of
realization. Payments will be based on work situations supported by all supporting documentation. The
deduction shall be made on the payments made by the contracting authority through the paying
accountant under the terms of the contract, Act of market collateral to be systematically requested in
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such transactions. Nevertheless, the Shari a requirements in this regard should be taken into account (see
below).
Competitions by Musharakah also meet the financing needs of small entities in the craft sector, hotels,
restaurants and other types of activities which, despite their weaknesses in terms of guarantees and
financial resources, have a clear cultural interest. These sectors generally benefit from tax advantages
and stable and faithful demand which largely offset the aforementioned disadvantages.
Some countries with an old banking tradition have favored the development of banks specializing in
financing such activities and operating in a participatory manner (popular banks).
Cons:
The liabilities of the partners in Musharakah are unlimited and if the loss is not covered with the
business assets then the personal assets of the partners are held liable to cover the loss. This is one of the
major disadvantages of the Musharakah financing.
As there are partners in the same business therefore there is a distribution of profit among them with the
consent of all partners but still there is the conflict that one partner may be envious of the other partners
share in the profit and can cause disputes among them.
There may be a huge conflict in the decision making in Musharakah financing as all the partners has
equal rights to participate in the management of Musharakah hence a decision made by one might not be
acceptable by the others.
The contract of Musharakah is terminated by the death of one of the partners in Musharakah and it may
not be able to yield goodwill if the contract terminates on the grounds of the death of partner and will be
difficult for the partners to make sure the profit after making a new contract.
Musharakah Contract does not allow any new partners to enter in an existing contract and thus the extent
of the company is limited and the company cannot be further expanded due to this particular of the
Musharakah contract.
<Semester 6>
As the decision making right is equal for the partners in Musharakah, there may be a dispute that the
decision suggested by one of the partners is not accepted by the rest of the partners and hence the
decision is dependent on the consent of all the partners which might be a big problem.
MUDARABAH:
Pros:
The Mudarib will deploy the funds on behalf of the Rab-ul-Maal in a profitable manner, by
utilizing its expertise and skills;
The Mudarib cannot pre-advise the rate of return to the Rab-ul-Maal on its capital; it can,
however, indicate a certain range based on its past performance;
The Mudarib has full discretion to manage the funds as it sees fit; funds will not, however, be
deployed in activities or businesses repugnant to Shariah principles;
The Rab-ul-Maal will not interfere in the affairs of the Mudarabah;
The Mudarib will share the profit with the Rab-ul-Maal at a pre-agreed ratio;
The Mudarib will return the funds to the Rab-ul-Maal upon completion of the Mudarabah period,
along with the share of profit for Rab-ul-Maal generated by the Mudarabah;
If the Mudarib has been negligent in deploying the funds prudently, resulting in a loss for the
Rab-ul-Maal, it must bear the loss and return the entire amount originally provided to the Rab-ul-
Maal;
Additionally, the Rab-ul-Maal will have the right to seek compensation from the Mudarib for
any actual loss suffered by it due to the Mudarib’s negligence;
A genuine loss not, however, caused by the Mudarib's negligence will be borne by the Rab-ul-
Maal.
An Islamic bank receives funds from the customers through their current accounts, investment saving
accounts and investment deposit accounts.
The current account funds do not attract any return, and hence are excluded from the Mudarabah. The
Islamic bank guarantees the safe return of these funds.
<Semester 6>
The deposits received by an Islamic bank in investment savings and investment deposits accounts are
part of the Mudarabah, and therefore receive a proportionate share of profit. These funds are put into a
common pool the bank draws on for its day-to-day fund deployments.
Withdrawals from the investment saving accounts are allowed once a month, and the lowest balance
during the month is considered part of the common pool. The investment deposit accounts are placed for
different fixed periods such as one, three, six, nine and twelve months and beyond.
Cons:
Mudarabah is considered as an Islamic mode of financing but historically it is not true. At the age of 25,
Prophet Muhammad (Peace be upon him) entered into a business contract with Khadija even before the
revelation he received. In that contract the position of Prophet Muhammad (Peace be up on him) was a
Mudarib.
It is also noted that in the conventional Mudarabah arrangement, Mudarib bears no loss even if he is the
only reason of loss. When a loss occurs, the Mudarib acts like an employee of the business and when the
profit occurs, he shares in the profit.
Based on the practice established by Prophet Muhammad (Peace be upon him) money flows from a rich
financial entity to a small business entity. But in the case of current Islamic banking practices, the flow
of funds is from a small pool of investors to a large financial entity. Moreover due to the following
reasons a businessman may not prefer Mudarabah contracts;
The need to keep and reveal detailed records,

The difficulty to expand a business financed through Mudarabah because of limited opportunities
to re-invest retained earnings and/or raising additional funds,
The entrepreneur's inability to become the sole owner of the project.
<Semester 6>
MURABAHAH:
Pros:
Because Muslims may not charge interest but can make a profit, the basic trade deal, the Murabaha, is a
‘cost plus’ transaction in which the seller supplies goods to the buyer at a price which includes his
disclosed costs plus a disclosed profit. When accepting the goods, the buyer agrees to the selling price
and is aware of how much profit is being made (the argument being he can choose not to buy if he
dislikes the price). If the buyer requires time to pay, then this can be granted, usually in return for a
higher price including a bigger profit. This is one of the ways that the time value of money can be
covered under Islam without charging interest.
However, there are some terms and conditions for Murabaha. First the seller must own and possess the
goods which must be under his control. The goods must have a tangible value and there must be no
uncertainty about quantity, quality or delivery dates. The seller may not take advantage of the buyer,
may not cheat, deliberately mislead, overcharge or be anything other than scrupulously honest with him
or her. Delivery and transfer of ownership must take place when the transaction is concluded. Once the
deal has been done, it cannot be amended without the express approval of both sides. These ancient
Murabaha trading rules are clearly framed to avoid disputes or problems and no doubt evolved over
time.
Provided the rules set out above are followed, a Murabaha can be for almost any amount and in theory
any time period although the range is usually 6 months to 10 years depending on the bank, which will
also set minimum and maximum loan amounts. For the transaction to be Islamic the Islamic bank must
be the owner and supplier of the car, which means it must purchase and take delivery from the supplier
before selling to its client. This creates a delivery risk as the client could walk away before the
transaction is complete. For this reason, some Islamic banks ask for non-refundable deposits.
Despite this risk, Murabaha are priced at the higher end of the consumer funding scale. The attraction
for Islamic banks providing Murabaha facilities in the returns are high, it is a relatively simple product
to market and sell and the risk profile is low. The main drawback is rates are fixed at the outset and the
average term is 5 years. This creates an immediate mismatch with funding sources (nearly all short term)
and leaves the bank vulnerable to increases in the cost of funds (interest rates). A large portfolio of well
<Semester 6>
spread and maturing Murabaha protects partially against interest rate fluctuations as new, higher return
products replace maturing lower return deals, but not completely. In addition, a Murabaha cannot be
turned quickly into cash in a crisis.
Cons:
Payments coming from the sale are receivables and for this, the client may be asked to furnish a security.
It can be in the form of a mortgage or hypothecation or some kind of lien or charge.
The seller can ask the client to furnish a 3rd party guarantee. In case of default on payment the seller
may have recourse to the guarantor who will be liable to pay the amount guaranteed to him.
Another issue with Murabaha is that if the client defaults in payment of the price at the due date, the
price cannot be changed nor can penalty fees be charged.
In order to deal with dishonest clients who default in payment deliberately, they should be made liable to
pay compensation to the Islamic Bank for the loss suffered on account of default.
However these should be made subject to the following conditions:

a) The defaulter may be given a grace period of at-least one-month.
b) If it is proven beyond doubt that the client is defaulting without valid excuse then compensation can
be demanded.
Murabaha transaction cannot be rolled over for a further period as the old contract ends. It should be
understood that Murabaha is not a loan rather the sale of a commodity, which is deferred to a specific
date. Once this commodity is sold, its ownership transfers from the bank to the client and it is therefore
no more a property of the seller. Now what the seller can claim is only the agreed price and therefore
there is no question of affecting another sale on the same commodity between the same parties.
Sometimes the debtors want to pay early to get discounts. However in Islam, majority of Muslim
Scholars including the major schools of thought consider this to be un-Islamic. However if the Islamic
bank or financial institution gives somebody a rebate on its own, it is not objectionable especially if the
<Semester 6>
client is needy.
The Murabaha can only be affected when the seller can ascertain the exact cost he has incurred in
acquiring the commodity he wants to sell. If the exact cost cannot be ascertained then Murabaha cannot
take place. In this case the sale will take place as Musawamah i.e. sale without reference to cost.
All commodities cannot be the subject matter in Murabaha because certain requirements need to be
fulfilled. The shares of a lawful company can be sold or purchased on Murabaha basis because
according to the principles of Islam the shares represent ownership into assets of the company provided
all other basic conditions of the transaction are fulfilled. A buy back arrangement or selling without
taking their possession is not allowed at all.
Murabaha is not possible on things that cannot become the subject of sale. For example, Murabaha is not
possible in exchange of currencies.
IJARAH:
Pros:
One of the most important benefits of Ijara for a lessee is that, by allowing 100% financing, it enables
the lessee to conserve his capital and even channel it to other revenue-making ventures. As Ijara implies
borrowing without interest, the lessee’s capital becomes conserved on another front as well. Another one
of the critical benefits of Ijara for a lessee stems from the inherent simplicity of the transaction
process—the lessee gets to enjoy the right to use the asset specified in the contract and reap its benefits
immediately after making the first rental payment.
The benefits of Ijara for a lessee become reflected on his balance of payments statement as well. As this
mode of financing is not treated as debt financing, it does not get reflected as a “liability” in the lessee’s
balance sheet and thus is left out of the debt ratios. So, when bankers or other loan givers are
determining financing limits, the lessee can hope to enter into other leasing agreements without harming
<Semester 6>
his overall debt rating. Also all payments made as part of the Ijara leasing agreement are considered to
be operating expenditure and so are fully exempt from taxation.
One of the other notable benefits of Ijara for a lessee is that this financial agreement allows both parties
to negotiate the amount of rental payment. In a dynamic business world, this flexibility proves to be
immensely beneficial by allowing both the lessee and the lessor to modify the rental arrangement to
account for economic fluctuations and changes in fiscal and monetary policies.
There are other practical benefits of Ijara for a lessee as well, especially in instances where the lessee is
renting a piece of equipment. The Ijara mode of financial agreement is the most feasible choice when a
lessee wants to rent a piece of equipment only for a short period of time. However, customers have also
been known to enter into Ijara agreements when although they are leasing a piece of equipment for a
long period of time, the equipment has a poor resale value. In such instances, the benefits of Ijara for a
lessee arise from the fact that the lessee does not have to bear the depreciating costs of the equipment as
per normal accounting principles.
Cons:
Only certain product (durable goods) can be purchased and not services such as car accessories,
furniture, house hold appliances, electronics, etc.
• The good should be from pre-approved list of merchants only.
• It has a limited market so far, and people fear the new
With regard to financial leasing, the main critique is that the Ijarah certificates should represent a portion
of the bearer's ownership in the leased assets and not a mere sale of the right to charge rent. This is not
also an insurmountable issue. Issues pertaining to compensation, or imposition of penalty for default,
also call for attention but this too is a matter of correct observance of Shariah provisions and insertion of
suitable clauses in the lease contract so as to curb unfair practices that burden the lessee with
unwarranted demands. Another issue raised is over the obligatory manner of committing the lessee to
acquire ownership of the leased asset at the end of the contract period. This practice is inconsistent, as
explained earlier, with the requirements of Islamic law. For stipulation of such terms in the original lease
<Semester 6>
not only amounts to combining two contracts in one (known as al-safqah fi safqatayn), but can also lead
to injustice. There is no objection to drawing a basic memorandum of understanding, or exchange of
promises, between the parties that would help secure the desired purposes of the parties, provided it does
not bind the lessee to acquire ownership. The lessor may also make a unilateral commitment to offer the
lessee an option to buy the leased assets at the end. For those who accept the legality of traded options
from the Islamic perspective, one may suggest perhaps that the lessor may offer a put option to the
lessee to sell the leased assets to the latter at the end of the contract period. The option so provided
would only commit the lessor but would not bind the lessee to exercise the option. Since a traded option
is a separate contract in any case, this would overcome the issue of combining two bargains into one.
One may also suggest that the lessor should in such a case absorb the costs of the put option and offer it
in the form, as it is, of a unilateral commitment upon him.
Ijara structures have a limit, as typically the most expensive asset which can be transferred is real estate, and that
has a financial value limit both from a sale and rental income perspective, especially for corporate issuers for
whom typically their most valued real estate asset will be their headquarters.
<Semester 6>
RECOMMENDATIONS:
DIBPL is an effectively operating and profit making organization and carrying out its activities under a
specified system of procedure. The main regulatory body is State Bank of Pakistan, which provides
policy guidelines and ensures that the money market operates on sound professional basis, while the
head office specifies the whole procedure of function and operations. This procedure has been
modernized with the passage of time with a view to streamline the approach and underlying procedure
for effective overhauling of its own capabilities so as to bring them at par with international practices.
There are people who are motivated towards their work but on the whole, it seems like employees do not
work on time and enjoys wasting their time, which is a big hurdle in its way to progress. Also working at
the bank, I also found out that all the departments are not linked together. Employees usually hide their
work from other employees as its match going on and whoever does the best would be awarded. That
should not be the case. All the departments should work as team not as individuals, so that the whole
branch would get benefit out of it. So there is a lack of teamwork, also due to this weakness of the
branch, its customers are not satisfied. I talked to many clients of the bank but most of them were not
satisfied with the services provided specially in the departments namely Account department, Cash
department and Bill collection section. So I would suggest to the employees to work whole- heartedly
and show keen interest in their work.
Based on my experience at DIBPL, I have tried to give recommendations for further improvement:
First of all, I would like to recommend the bank must pursue am aggressive marketing and
advertising strategies so that it can create awareness in the public about its Islamic products and
services.
The personnel in the bank should not be overstressed with workload. The workload is of a
destructive level. At that level of load the employees loose all the comfort in their work and
remain tense and frustrated.
DIBPL should increase the pays to employees, because the salaries of the employees are much
lower as compare to the banking industry, which leads to employees‟ dissatisfaction and
turnovers.
DIBPL needs to improve its website. More information relating to financial performance of theb
ank should be available on the website.
<Semester 6>
Management should distribute work equally among the different employees.vi. Related jobs shou
ld be assigned to the employees so that they can work more efficiently.
In my opinion the process of a transaction should be short in order in save time for both
customers and the bank.
Staff strength should be enhanced and professional qualified persons should be recruited.
It is recommended that proper training be provided to the staff members that will ultimately
increase the performance of Bank over all.
It is suggested that promotion be given to the staff in due time and on the basis of performance to
provide job satisfaction.
The bank should spend more on renovation of the branches to improve environment and
atmosphere to attract the customers.
Sitting arrangement, air conditioning and new furniture should be facilitated
The Bank should introduce the computers software to cope the heavy load of work and better
control.
Extra counters should be established in order to facilitate during the rush days the difficulties
faced by the bank staff as well as the customers.
All Branches of the Bank must be online.
All the departments should be established separately.
Bank can increase its profit ratio by reducing extra expenditures and to enhance the volume of
advanced especially retail loans.
I done internship, I recommend that security level in the bank should be enhanced especially
where I got internship and operation of Mobile phones must not be allowed inside the Bank.
Bank should take step to establish separate counters for the old age employees and pensioners.
The Bank should locate new market for its operational activities in the country as well as abroad.
The Bank should increase profit rate on deposits and saving schemes especially for pensioners
and old age citizens.
For improvement of internal control and system the compliance wing and surprise inspection
system should work more effectively.
To avoid complaints and leaving the bank job number of staff should be enhanced and their
salaries should be levelled to the private/multinational banks.
Double shift system should be introduced to improve attitude and behaviour of the employees.
<Semester 6>
Payment of salaries should be made separately to accommodate the valued customers and
depositors.
For collection of utility bills i.e. Electricity bills, Telephone bills, Water and Gas bills separate
cash receipt counter must be established.
Procedure of receiving loans should be easy and short time to facilitate the borrowers and
enhance the profitability of the Bank
<Semester 6>
Q2.Select any Islamic and commercial banks and differentiates between

conventional lease &Ijarah
OWNERSHIP:
Conventional Lease: In conventional leasing the creditor institution (banks,
leasingcompanies etc) retains the ownership of the asset throughout the term of the contracts.
Ijara: Muajjir´ (lessor) is the owner of the leased property.
RISK BEARER:
Conventional Lease: The lessor assumes and manages the risk of the asset.
Ijara: As Ijara is an asset based contract, and lessor or Muajjir has the ownership of the asset, therefore
all the ownership related rights and liabilities lie with the Muajjir and Mustajir irresponsible for all the
usage related rights and liabilities. Any loss or harm caused by factors beyond the control of
the ³Mustajir´ lessee shall be borne by the ³Muajjir´
STARTING TIME FOR RENTAL OBLIGATION:
Conventional Lease: The rental falls due from the date when the lessee accepted the goods.
Ijara: The rental falls due from the date of handing over the asset to “Mustajir”.
USEFULNESS OF PROPERTY:
Conventional Lease: The leased equipment must not be “limited use” property.
Ijara: It is a condition that the asset to be leased must be a non-fungible one which can be utilized more
than once.
PENALTY:
Conventional Lease: Penalty can be charged to the lessee for delayed payment.
Ijara: Penalty can be charged to the lessee for delayed payment though the amount recovered is only to
be used for charitable purposes by the lessor.
<Semester 6>
REPOSSESSION OF AN ASSET:
Conventional Lease: The lease must not contain an option to purchase the asset at a bargain price.
Ijara: There can’t be two contracts in one contract. Since the purpose of “purchase bargain option” is
entirely different than the purpose of transferring the usufructs of an asset. Inserting the clause of
“purchase bargain option” serves the purpose of another contract. On the one hand it allows the lessee to
avail the usufructs of the leased asset and on the other hand it also gives the right to the lessee to
purchase the same leased asset, which is not allowed in Shariah.
VALUATION UPON COMPLETION OF LEASE PERIOD:
Conventional Lease: The asset must have secondary value after the expiry of the primary lease term.
Ijara: A leased asset must have a value upon completion of the agreed leased period.
PREMATURE TERMINATION OF LEASE:
Conventional Lease: Lease can be terminated in the event that the lessee fails to meet his obligations,
notably the obligation to pay rent. The lessor must then instigate legal proceedings involving the
bringing of a claim, where equipment is concerned. Lessee can’t terminate lease if contract does not
contain cancellation clause.
Ijara: Premature termination of the lease is allowed provided that the lessee has violated or contravened
the terms of the lease.
EFFECT OF PREMATURE TERMINATION:
Conventional Lease: On termination of lease contract, all obligations that are still executor on both
sides are discharged.
Ijara: From the time of termination, the lessee is not obliged for rental payment.
SALE AND LEASE BACK AS ONE TRANSACTION:
Conventional Lease: This transaction involves the sale of the property by one company to another
which in turn leases the same property back to the original seller.
<Semester 6>
Ijara: Sale and lease back are allowed, but only as two separate transactions.
DETERMINANT OF RENT:
Conventional Lease: Lessor considers market related forces while scheduling lease payments. The
market rate of interest provides a basis for lease determination.
Ijara: Rent is determined by market given forces. In practice, the market rate of interest is used to
determine the rental rate, although this is not explicitly stated.
EQUIVALENT TO A SALE:
Conventional Lease: A manufacturer or dealer doesn’t recognize any selling profit on entering into an
operating lease because it is not the equivalent of a sale.
Ijara: Leasing differs from sale in the way that it does not transfer the corpus or ownership of the
property, which remains with the transferor.
<Semester 6>

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Principles of Islamic Business and Finance PUGC Sadaf Bilal

Principles of Islamic Business

Dubai Islamic Bank

OVERVIEW OF THE ORGANIZATION

HISTORY OF DUBAI ISLAMIC BANK PAKISTAN LTD:

NATURE OF THE ORGANIZATION:

sharing (Mudarabah), safekeeping (Wadiah),joint venture (Musharakah), cost plus(Murabaha), and

FUTURE PROSPECTS OF DIBPL

WEAKNESSES OF THE ORGANIZATION WITH MAIN FOCUS ON

ROLE OF SHARIAH BOARD:

Important Duties of the Shariah Board:

It is the source of expert knowledge on Islamic Principles (Including Fatwas).

MANAGEMENT TEAM OF DIBPL:

ORGANIZATION HIERARCHY OF DIBPL:

It is the one of the first and leading Islamic bank.

Growing demand of Islamic products and services

Marketing Mix includes four P‟s of marketing. These are:

Saving Plus Account

Saving Special Account

OTHER ACCOUNTS OFFERED BY DBIPL:

Cash Manager Account:

Investor Portfolio Securities (IPS) Account:

Receipts of customer's deposits

Validity: There is no restriction on the period of validity.

Availability: At 36 branches of DIBPL all over the country.

Encashment: At all branches of DIBPL.

Limitation: No limit on purchase.

TRADE FINANCES & OTHER BUSINESS LOANS

Working Capital and Short Term Loans:

Medium term loans and Capital Expenditure Financing:

Loan Structuring and Syndication:

Cash Management Services:

SHORT TERM INVESTMENTS:

Investment into the capital market

ISTISNA CUM WAKALA:

WAKALA ISTITHMAR – LOCAL SALES:

Running Musharakah is available to our corporate customers as substitute to Conventional Banking

SHIRKAT-UL-MELK CUM IJARAH:

IJARAH BASED SUKUK

MUSHARAKA BASED SUKUK

ISLAMIC EXPORT REFINANCE:

WAKALA ISTITHMAR – PRE MANUFACTURING:

WAKALA ISTITHMAR – POST MANUFACTURING:

REGISTERED IMPORT CONTRACTS:

COLLECTION AND NEGOTIATION OF EXPORT DOCUMENTS:

BANK TAKAFUL SERVICE (INSURANCE):

Al-Islamic Cash cover:

As an individual you have many dreams…

The only product of its kind available in the market

Bulk & Data Processing:

Depository Services / Liquidity / Funds Management:

Foreign Exchange Remittances:

Designated Bank Services:

Wakala Istithmar Facility (Exports):

Wakala Cum Istisna’a Facility (Local Supplies):

Human Resource Management Department

Cash department performs the following functions;

2. OUT STATION CHEQUE

1. In-word clearing Books: