ISLAMIC BANKING

AND FINANCE
TERM-PROJECT

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ALLIED ISLAMIC BANK LIMITED

• First bank to be established in Pakistan.

• Is the fifth largest commercial bank in Pakistan.
• Established in 1942 - Australasia bank.
• Renamed to Allied Bank of Pakistan post Independence – 1974.
• Again, renamed to Allied Bank Limited in 2005 after ownership transferred to Ibrahim Group.
• Long term credit rating of AAA and Short-term credit rating of A1+
• Corporate Governance Rating of CGR-9+

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ALLIED ISLAMIC BANK LIMITED

• Islamic Banking was launched in 2011 by ABL.

• 1400 branches over Pakistan with 2 Overseas branches.
• 117 are Islamic Banking Branches across 53 major cities.
• First Islamic Banking branch was launched in 2014 in Lahore.
• 110 branches have Islamic Banking Windows.
• IBG of ABL was awarded “The best emerging Bank in Islamic Finance” in 2017.
• Aitebaar Islamic Banking Service was launched in 2018.

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HIERARCH
Y
(CHANGE )

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BOARD OF DIRECTORS
(BIGGER PICTURE)
• 8 Members
• Muhammad Naeem Mukhtar – Chairman
CEO of Ibrahim Group

• Aizid Razzaq Gill – CEO of Allied Bank Limited

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SHARIAH BOARD

• Mufti Muhammad Iftikhar Baig – Chairman

• Mufti Mahmood Ahmed
• Mufti Tayyab Amin – Resident Shariah
Board Member
Shariah Compliance
Department
• Zubair Tariq Khan – Head Shariah
Compliance
• Nayyar Mahmood

https://www.abl.com/islamic-banking/shariah-board-members/
 ISLAMIC BANKING DEPOSITS

https://www.abl.com/islamic-banking/islamic-banking-deposits/

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 ISLAMIC BANKING DEPOSITS (2019 ADD)

• Islamic Banking Deposits : Qard and Modaraba

• Current Account Deposits : Basis of Qard
• Saving/Fixed Account Deposits : Basis of Modaraba
• Deposits risen by 21.66%
Chart Title

29% 34%

30% 7%
0%
0%
Individuals Government
Public Sector Banking Companies
Non-Banking Companies Private Sector

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SHARIAH-COMPLIANT ISLAMIC BANKING
DEPOSITS
1. Allied Islamic Asaan Saving Account 9. Allied Islamic Business Plus Account
2. Allied Aitebar Institutions Account 10.Allied Islamic Current Accounts
3. Allied Aitebar Premium Account 11.Allied Islamic Khalis Munafa Account
4. Allied Aitebar Waseela e Hajj & Umrah 12.Allied Islamic Sahulat Account
Account 13.Allied Islamic Savings Account
5. Allied Islamic Anmol Plus Account 14.Allied Aitebar Express Account
6. Allied Islamic Asaan Current Account 15.Allied Islamic Youth Account (Regular &
7. Allied Islamic Basic Banking Account Asaan)
8. Allied Aitebar Senior Citizen Account
(Regular & Asaan)

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ISLAMIC BANKING DEPOSITS BASED ON
LOAN (QARD)

1. ALLIED ISLAMIC CURRENT ACCOUNT

2. ALLIED ISLAMIC BASIC BANKING ACCOUNT
3. ALLIED ISLAMIC ASAAN CURRENT ACCOUNT

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 ALLIED ISLAMIC CURRENT ACCOUNT

• Without any risks or rewards.

• Shariah-compliant modes on investing
• Individuals and business entities
• No Minimum balance requirement.
• No charges recovered at the time of closing the account
• Initial deposit amount – Rupees 1,000
• No Profits or Loss will be shared with the customers

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ALLIED ISLAMIC CURRENT ACCOUNT

• No Initial deposit for Students, Government Employees and Mustahkeen of Zakat

• No restriction on transaction amount and number of deposit / withdrawal transactions 
• Value added services
• Account will be opened as per the process mentioned in Banking Services Manual

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 ISLAMIC VS
CONVENTIONAL
BANKING

https://www.abl.com/islamic-banking/islamic-vs-conventional-banking/

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ISLAMIC BANKING DEPOSITS BASED ON
PROFIT/LOSS SHARING BASIS (MUDARABAH)
1. Allied Aitebar Institutions Account 9. Allied Islamic Savings Account
2. Allied Aitebar Premium Account 10. Allied Aitebar Express Account
3. Allied Aitebar Waseela e Hajj & Umrah 11. Allied Islamic Youth Account (Regular &
Account Asaan)
4. Allied Islamic Anmol Plus Account 12. Allied Aitebar Senior Citizen Account
(Regular & Asaan)
5. Allied Islamic Asaan Saving Account

6. Allied Islamic Business Plus Account

7. Allied Islamic Khalis Munafa Account
8. Allied Islamic Sahulat Account

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ALLIED ISLAMIC SAVINGS ACCOUNT

• Profit rates are not predetermined.

• Profit from Mudaraba is distributed on pre-agreed ratio of weightage
• Funds are invested in Shariah compliant-avenues
• Loss is borne by depositor proportionate to their investments
• No Minimum balance requirement
• Profits or Loss will be shared on monthly/six monthly basis

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ALLIED ISLAMIC SAVINGS ACCOUNT

• No charges will be recovered at the time of closing the account.

• Cheque Book will be issued to the customer for withdrawal of funds
• Account will be opened as per the process mentioned in Banking Services Manual.

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 ISLAMIC VS
CONVENTIONAL
BANKING

https://www.abl.com/islamic-banking/islamic-vs-conventional-banking/

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ISLAMIC INVESTMENT
CERTIFICATES, SME FINANCING
AND BANCA TAKAFUL
https://www.abl.com/islamic-banking/islamic-investment-certificates/
https://www.abl.com/islamic-banking/banca-takaful-2/

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 ISLAMIC CONSUMER FINANCING

https://www.abl.com/islamic-banking/islamic-consumer-finance/

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ALLIED AITEBAR HOME MUSHARAKAH

• Mode of Financing: Diminishing Musharakah

• Tenure: 3 years – 25 years
• Free Life Takaful
• Low-Cost Housing Finance

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ALLIED AITEBAR CAR IJARAH

• Mode of Financing : Ijarah

• Asset Transfer Facility
• Premature Termination
• Protection against default: Security deposit, Repossession of vehicle

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 ISLAMIC INVESTMENT CERTIFICATES

• Allied Islamic Investment Certificate is a Sharia compliant mode of investment with

variety of tenors and profit / loss distribution options.
• Investment Certificates are based on “Mudaraba” Contracts.

https://www.abl.com/islamic-banking/islamic-investment-certificates/

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ISLAMIC INVESTMENT CERTIFICATES

• Features
Issued for the period of 1 month, 4 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5
years.
Profits or Loss will be shared on Monthly, Quarterly, Half Yearly or Maturity basis
Investment certificate are issued in the multiple of minimum Rupees 25,000

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PROFIT
RATES

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 ISLAMIC SME FINANCING

• ABL-Islamic Banking offers reasonable range of Sharia Compliant Based Assets Products for
all segments of the business.
• Eligibility Criteria
• Financing Limits
Bank will gauge customer’s financing requirements and propose financing limits accordingly.

https://www.abl.com/islamic-banking/islamic-sme-financing/

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ISLAMIC SME FINANCING

• Pricing Criteria
Profit will be charged to applicant based on relevant KIBOR plus agreed spread
• Modes of Repayment and Penalties
Finance can be adjusted upon its maturity date or prematurely before maturity date.

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BANCA TAKAFUL

• “Takaful” is an Arabic word which means “joint-guarantee”.

• ABL offers two types of takaful contracts

PAK-QATAR REGULAR TAKAFUL & SAVINGS PLAN

• This plan is available to all Bank customers from 18 to 70 years of age. The minimum duration of
the plan is 10 years.
• Two types of investment strategies are available:
Conservative Fund Strategy
Growth Fund Strategy

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 BANCA TAKAFUL

JUBILEE SUPER SHIELD TAKAFUL PLAN

• Jubilee Super Shield Takaful Plan is a flexible plan that lets you select additional optional
benefits based on your needs
• If you are between the age of 18 & 65, you are eligible for Jubilee Super Shield Takaful Plan.
The available term range is 10 to 57 years

https://www.abl.com/islamic-banking/banca-takaful-2/

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FINANCIAL
INSIGHTS
 CHARITY POOL (ADD
2019)

• Amounts realized from Prohibited sources

• Customer Delayed Payment charges
• Granted to Approved Charitable
Organizations naming:
1. Shaukat Khanum Memorial Cancer
Hospital
2. Imran Khan Foundation
3. Al-Mustufa Trust
 ASSET
REVIEW
• Risen by 57.81%
• During the year, the SB approved
new products:
• Allied Aitebar Solar System Finance
• IRS for Working Capital Financing &
Combating COVID – 19

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ISLAMIC FINANCING
● Increased by 158.76%
● Business Musharkah (55.07%)
● Diminishing Musharkah (35.36%)
● Islamic Export Re-Finance–
Business Musharkah (3.06%).

Ijarah COMPOSITION
Vehicles Equipment Total

3%

97%

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Islamic Export Refinance Scheme
Part I Part II
• To Provide Liquidity to Islamic Banks for
Indirect Exporters as Direct Exporters
export financing well as Direct only
• To Promote Exports Exporters
• Musharkah between SBP & IBIs Tenor IDE-120 days; 180 days
• Murabaha between IBIs and exporters DE-180 days
• SBP has assigned annual limits of financing Document for IDE: Form 4 Limit assigned
availing ILC/SPO/ Financing based on EE -1
to 1.5 times equity of Islamic Banks Agreement Form 3
• Pool exposure to any one sector < 50% DE: Form 3/ DP Note
• SBP contribution to Pool up to investment FEO/ELC/ Financing
provided Agreement
• Bank contribution equal to or more than Documents to IDE: Invoice, EF-1
SBP’s submit Delivery challan
/GNR) Truck/Railway
Receipt, DE: Original
Duplicate of Form E,
BL/AL, Invoice,
EPRC
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 Suggestions to ABL

• Bank’s increased focus on creating awareness regarding misconceptions of Islamic

banking by conducting seminars / programs and awareness sessions is well
appreciated. It is recommended that such programs should also be continued in
future at mass level.

• Conventional insurance is not permissible from Shariah perspective. Therefore, it is

recommended to convert IBG’s assets to Takaful as soon as possible

• Bank may introduce new version of Business Musharakah wherein profit

calculation basis is delinked with KIBOR

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 References:

https://www.abl.com/islamicbanking/?__cf_chl_captcha_tk__=0pzBDNRYCQfI6KuA0fMLCX1anmlWklTD_EW_j9
Gm3OE-1637579059-0-gaNycGzNCJE
https://www.abl.com/islamic-banking/profit-rates/
https://www.abl.com/islamic-banking/schedule-of-charges/
https://www.abl.com/islamic-banking/islamic-banking-deposits/
https://www.abl.com/islamic-banking/weightages-and-profit-sharing-ratios/
https://www.abl.com/islamic-banking/islamic-branches/

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THANK YOU!

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