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GROUP MEMBERS
• Syed Muhammad Umair• Muhammad Bilal• Ammara• Amna
HISTORYBANK ALFALAH LIMITED IS A PRIVATE BANK IN PAKISTAN OWNED BY THE ABU DHABI GROUP. BANK ALFALAH WAS INCORPORATED ON JUNE 21, 1997 AS A PUBLIC LIMITED COMPANY UNDER THE COMPANIES ORDINANCE 1984. ITS BANKING OPERATIONS COMMENCED FROM NOVEMBER 1, 1997. THE BANK IS ENGAGED IN COMMERCIAL BANKING AND RELATED SERVICES AS DEFINED IN THE BANKING COMPANIES ORDINANCE, 1962.
ABOUT BANK ALFALAH ISLAMIC BANKING
BANK ALFALAH ISLAMIC BANKING WAS ESTABLISHED AS A DEDICATED ISLAMIC BANKING DIVISION WITHIN BANK ALFALAH LIMITED IN 2003 TO OFFER ITS CUSTOMERS PRODUCTS THAT ARE SHARIAH COMPLIANT. BY INTRODUCING ISLAMIC FINANCIAL SOLUTIONS, WE ARE FULFILLING OUR PROMISE OF BEING RESPONSIVE TO OUR CUSTOMERS’ NEEDS.
BANK ALFALAH REMAINS THE NUMBER 2 ISLAMIC BANK IN THE COUNTRY. ISLAMIC BANKING GROUP(IBG) HAS BEEN A SUCCESS STORY RIGHT FROM INCEPTION AND TODAY, GENERATES AN OPERATING PROFIT IN EXCESS OF RS 1.6 BILLION. WE HAVE RECENTLY ACHIEVED THE CENTENNIAL ISLAMIC BRANCH MILESTONE AND CURRENTLY BOAST A NETWORK OF 110 ISLAMIC BANKING BRANCHES SPREAD ACROSS THE COUNTRY.
Product Name Mode Type of Product
Basis for Pricing Tenors Target Customers
Alfalah Murabaha Finance (Local, Import and Export)
Murabaha Corporate, SME
Pricing is linked with Kibor for the facility but for a particular deal it remains fixed
As per terms of Sanction
Small & Medium Enterprises, Commercial and Corporate entities
Alfalah Murabaha Finance (Import )
Murabaha Corporate Pricing is linked with Kibor for the facility but for a particular deal it remains fixed
As per terms of Sanction
Small & Medium Enterprises, Commercial and Corporate entities
Alfalah Murabaha Finance (Export)
Murabaha Corporate, SME
Murabaha As per terms of Sanction
Small & Medium Enterprises, Commercial and Corporate entities
Alfalah Car Ijarah Ijara Muntahee Bttamleek
Consumer § Profit Rate remains fixed through out the tenor § Currently, profit rates range from 14.5 % to 17.0 %; depending on brand of vehicle & tenor of lease
3 - 5 Years Individuals
Asset Side Products
Product Name Mode Type of Product Basis for Pricing Tenors Target Customers
Ijarah Finance - Corporate As per terms of sanction. 3 - 7 Years Small & Medium Enterprises, Commercial and Corporate entities
Alfalah Musharaka Homes
Diminishing Musharakah
Year One: Currently, pricing is fixed for 1st year as under a) Salaried Individuals: 12.5 % b) Businessmen: 13.5 % For subsequent years, it is linked with Kibor
3 - 20 Years Mortgage of Property being purchased. Personal Guarantee of applicant. Minimum equity participation of 20 % or As per Bank‟s credit policy
Alfalah Salam Finance
Salam Commodity Financing
As per Terms of Sanction As per Terms of Sanction
SME, Commercial and Corporate entities
Product Name Mode Type of Product Tenors Profit Calculation Target Customers
Riba Free Saving Account
Mudaraba Saving NA Saving Individuals, businessmen, housewives, retirees, sole proprietors, associations, public ltd companies, semi-govt. and autonomous bodies
Riba Free Current Account
Qard Current NA - Individuals, businessmen, housewives, retirees, sole proprietors, associations, public ltd companies, semi-govt. and autonomous bodies
Riba Free Alfalah Musharaka Term Deposit
- Term on maturity and half yearly
7 days-5 years Individuals, businessmen, housewives, retirees, sole proprietors, associations, public ltd companies, semi-govt. and autonomous bodies
Liability Side Products
KIBOR• It is Karachi Inter Bank Offer Rate (KIBOR), given by specialized institution on daily, weekly,
monthly and on 1, 2 and 3 yearly basis to all the commercial banks of Pakistan so that they charge interest to their customers on that basis. This rate is inflation adjusted rate and then banks by adding 2 or 3% in KIBOR rate charge their customers for their profit.Pakistan Mercantile Exchange will offer 3-Month KIBOR. Futures Contracts available for delivery in the Twelve Quarterly expiries in the Mar, Jun, Sep, Dec cycle covering a period of three years.
Profit calculation formula in case of saving accountPrincipal (P) x Time (T) x Rate (R) /1200