Al Barqa-1

INTERNSHIP REPORT
On
SUBMITTED TO:
DR. WARIS ALI
SUBMITTED BY:
Miss. Farwah Fiaz
MBS-14-55
MBA (Finance)
Session 2014-2017
BAHAUDDIN ZAKARIYA
UNIVERSITYMULTAN
SUB-CAMPUS SAHIWAL
ACKNOWLEDGEMENT
First of all I thank Allah, who is the holder of my breaths, without his
order nothing is possible.
I am highly thankful to my respectable teachers and friends and family
members who were my supporter throughout my educational career, further I
thank all the employees of the al-Baraka bank, where I have done my
internship.
I have set light, an ever-burning flame of gratitude and deep sense of
obligation
to
my
honorable
teachers
of
Department
of
Business
Administration for their valuable guidance, constructive criticism and

inspiring attitude during my studies. I appreciate and thanks to all the
member of the faculty. Besides, this internship program makes me realize the
value of working together as a team and as a new experience in working
environment,
which
challenges
us
every
appreciation go to the rest of al-Baraka
minute.
Not
forget,
great
staff that helped me to write
internship report on al-Baraka from time to time during the project. The
whole program really brought us together to appreciate the true value of
friendship and respect of each other.
Last words are lacking to express my feelings and indebtedness to my
affectionate Family and Friends for their love, appreciations, which always
stand by me mentally and spiritually during all years of my study.
PREFACE
Banking sector undertakes an important role in the economy of any
country in the terms of its wide functions. This of course is a momentous
aspect, which inspired me to have internship training. No doubt the
experience gained and practice wisdom developed thereof shall help and lead
me to the path of unprecedented progress in my practice and professional
life. This report is based on my two months training in Al-Baraka Bank,
Kachehry Road Branch Sahiwal.
Al-Baraka Bank has gained a momentum and possesses quite good
history behind it being a leading bank in Pakistan. This bank has been very
useful in terms of providing excellent services to Pakistan when the need
arose. I am confident that this report will guide and will be the source of great
help to its readers, to know about comprehensive & meaningful, mentioned
yet I feel that period was not adequate enough to grasp the tough procedure
and functions of the bank.
I am duly indebted to Mr. Manager and the other staff members for
their wholehearted cooperation during my training with them.
Fatima Rajab
Roll No: 24
M.Com (Finance)
TABLE OF CONTENTS
EVOLUTION OF BANKING
ISLAMIC BANKING
AL-BARAKA BANKING GROUP (AGP)
10
BRANCH NETWORK
11
REGULARLY INFORMATION
12
VISION, MISSION & CORE VALUE
13
BRANCH OF Al-BARAKA BANK AT SAHIWAL
14
RETAIL BANKING
15
CONSUMER FINANCE
24
PROJECTION OF BENEFITS
28
SERVICES
33
BUSINESS BANKING
37
FINANCIAL STATEMENTS
40
RATIO ANALYSIS
46
INTERPRETATION
49
SWOT ANALYSIS
50
PEST ANALYSIS
54
SUGGESTIONS AND RECOMMEATIONS
56
GLOSSARY
57
EVOLUTION OF BANKING
The word bank is said to have been derived from the words Bancus or
Banque or Back. The history of banking is stated to as early as 2000 B.C. The
priests in Greece used to keep money and valuables of the people in temples.
These Priests thus acted as financial agents. The origin of banking is also
traced to early Gold Smiths. They used to keep strong safes for storing the
money and valuables of the people. The people who have surplus money
found it safe and convenient to deposit their valuables with them. The first
stage of the development of modern banking thus was the accepting of
deposits of cash from those persons who had surplus money with themselves.
Issuance of Bank Note

The Gold smith used to issue receipts for the money deposited with
them. These receipts began to pass from hand to hand in settlement of
transactions because people had confident in the integrity and solvency of
Gold Smiths. When it was found that these receipts were fully accepted in
payment all debts then the receipts were drawn in such a way that it entitled
any holder to claim the specific amount of money from the Gold Smiths. A
depositor who is to make the payments may now get the money in cash from
Gold Smiths or pay over the receipts to the creditor. The receipts were the
earlier Bank Notes. The second stage in the development of banking thus was
the issue of Bank Notes.
Payment of Interest on Deposits

That all the people who had deposited money with them did not
withdraw their funds in cash. They found that only a few persons presented
receipt for encashment during a given period of time. They also found that
most of the money deposited with them was lying idle. At the same time they
found that they were being constantly requested for loan on good security.
They thought it profitable to lend at least some of the money deposited with
them to the needy person. This provides quite a profitable business for the
gold smiths. They instead on the money deposited with them. This was the
third stage of Evolution of banking.
Overdraft Facility
By expedience the banks came to know that they could keep a small
proportion of the total deposits for meeting the demands of customers for
cash and rest they could easily lend. They allow the depositors draw over and
above the money actually standing to their credit. In economic terminology
we can say that they allowed the overdraft facilities to their depositors. This
was the fourth stage in the Evolution of banking.
Multi-Service Organization
With the passage of time, the activities of the commercial banks have
greatly increased. They now deal with large number of matters such as
obtaining funds, advancing loans to businesses, farmers, households, making
investments in stocks, discounting bills of exchange etc. The commercial
banks are now multi-service organizations and play a very important role in
the financial markets.
Bank
No precise and comprehensive definition of the term BANK has yet
been enunciated. The most generally accepted definition of a banker is that
expressed by Sir JOHN POGET in the following words.
No one, no body, corporate or otherwise can be a banker who does not: Maintain current account.
Pay cheques draw on him.
Collects cheques on behalf of his customers.
Definition of Banking
Section 5(B) of banking companys ordinance 1962 defines the terms
bank as:-
Banking means the accepting for the accepting for the purpose of lending or
investment of deposit of money from public repayable on demand or
otherwise and withdraw able by cheques, draft order or otherwise.
ISLAMIC BANKING
The Origin and History of Islamic Banking:
The origin of Islamic banking system can be traced back to the advent
of Islam when the Prophet himself carried out trading operations for his wife.
The Mudarbah or Islamic partnerships has been widely appreciated by the
Muslim business community for centuries but the concept of Riba or
interest has gained very little diligence in regular or day-to-day transactions.
The first model of Islamic banking system came into being in 1963 in
Egypt. Ahmed Al Najjar was the chief founder of this bank. The key feature of
the institute was profit sharing on the non interest based philosophy of
Shariah. This bank was different than the commercial banks which were
paying or charging interest on transactions. It was more than a financial
institution. In 1974, the Organization of Islamic Countries (OIC) hJad
established the first Islamic bank called the Islamic Development Bank or IDB.
The basic business model of this bank was to provide financial assistance and
support on profit sharing.
The Idea continued to develop theoretically until 1974, when the first
Islamic commercial Islamic bank was established in Dubai, United Arab
Emirates. The same year also witnessed signing of the agreement to
establish the Islamic Development Bank IDB as an inter-governmental panIslamic bank. The main objective of the IDB was to finance development
projects in the Muslim countries in accordance with the rules and ethics of
Islamic finance. This was followed shortly by emergence of Faisal Islamic
Bank in Egypt in Sudan in 1977.
Subsequently, Bahrain Islamic Bank and
Jordan Islamic Bank came into being in 1978.

By the mid 1980s these newly formed ethical banking institutions
based on Islamic principles became an established part of mainstream
banking in the Middle East and South Asia. They continued to grow and
spread across South and East Asia. Subsequently, ethical banks and financial
institutions, based on Islamic principles, spread in countries where Muslim
were a minority, such as UK, Luxemburg, Denmark, Australia, India and the
United States. Many Muslims flocked to these new banking institutions, not
only for ethical and religious reasons, but also because they provided
professional and friendly services to their customers.
Islamic Banking in Pakistan

Pakistan was created in the name of Islam in 1947 since then there is a
pressing demand particularly from the religious leaders that interest should
be eliminated from the financial system of Pakistan. In the Constitution of
Pakistan it has been incorporated that one of the objective of the State is to
eliminate Riba (interest) from the economic system of the country.
From 1947 to 1960, the elimination of interest from the economy engaged
the attention of scholars but no concrete efforts were made to find out an
alternative to the interest based system.
However, from 1960 to 1977, the Council of Islamic Ideology (CII) put forward
a number of reports to the Government examining the meaning of Riba. In all
the reports it was firmly stated that the present day interest charged in the
financial system of the country is prohibited in Islam under the term Riba.
From 1977-1980, the Council of Islamic Ideology and the experts from the
State Bank of Pakistan worked out the details and proposed concrete steps
for removing interest from the economy.
In 2002, State Bank of Pakistan issued first Islamic Banking License for
offering the Islamic Banking Products and Services in the Country. Currently,
five full fledge Islamic Banks and various conventional banks are offering the
Islamic Banking Products and Services in the Country.
Kinds of Commercial Banks

There are two main kinds of commercial banks:
1. Scheduled banks
2. Non-scheduled bank
Scheduled Banks
According to sec 37(2A) of SBP Act 1956, if following terms and
conditions are fulfilled by commercial banks, it is included in the schedule of
SBP and SBP provides many facilities to the scheduled banks.
1. Paid up capital
If a commercial bank has a paid up capital and reserves of not less
than 5 lakes and fulfilling certain other requirements.
2. Banking in Pakistan
That commercial bank must do the business of banking in Pakistan i.e.
commercial bank must be Pakistani bank with the meaning of Pakistan
banking companies ordinance 1962
3. Functions of Banks
That bank must perform the functions of banking in Pakistan as stated
in section 7 of banking companies act.
4. Acts in customers favors
Commercial banks will not take any step, which is against the
customers.
AL-BARAKA BANKING GROUP (AGP)

Al-Baraka Banking Group (AGP) has a wide geographical presence
around the world in the form of subsidiary banking units and representatives
offices in 15 countries, which in turn provide services through more than 550
branches.
Algeria Bahrain Egypt Indonesia Iraq Jordan
Lebanon Libya Pakistan Saudi Arabia South Africa Sudan
Syria Tunisia Turkey .
Al-Baraka Bank (Pakistan) Limited
Al-Baraka Bank (Pakistan) Limited s a part of Al-Baraka Banking Group
(AGP), the leading international Islamic Bank in the Gulf region. ABG has an
authorized capital of US$ 1.5 billion, assets base of US$ 22 billion and total
equity of US$ 2 billion. It is registered as a Bahrain Joint Stock Company listed
on the Bahrain and NASDAQ Dubai stock exchanges.
With assets in excess of Rs. 90 billion, a workforce of 1700
professionals and a network of 135 branches in 82 cities across Pakistan, AlBaraka Bank (Pakistan) Limited is devoted to providing customers with a
range of shariah compliant products to suit their banking needs.
Al Baraka Bank (Pakistan) Limited, offers a wide array of Islamic financing
products such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance
etc., catering to a diverse cross-section of the economy including the
Corporate, SME and Consumer sectors.
BRANCH NETWORK
(135 Branches in 82 Cities)
(ABPL branches are available in the following cities and towns)
Karachi
23 Branches
Lahore
21 Branches
Islamabad
06 Branches
Rawalpindi
06 Branches
Multan
05 Branches
Peshawar
03 Branches
Faisalabad
03 Branches
Gujranwala
Hyderabad
Sialkot
03 Branches
02 Branches
02 Branches
Quetta
02 Branches
Sahiwal
01 Branches
Badin
01 Branches
Vehari
03 Branches
Sargodha
02 Branches
REGULARLY INFORMATION
Registration Head Office:
Al Baraka House, 162 Bangalore Town, Main
Shahra e
Faisal, Karachi
Name of Auditor:
Ernst &Young Ford, Chartered Accountant.
Name of Legal Advisor: Muhammad Siddique Memon
Senior Management
Senior management includes the senior executives of the bank who makes
efforts for rapid growth of the banks; ensure to streamline the bank affairs in
collaboration with the other staff. The senior executives of the Al Baraka Bank
(Pakistan) Limited are as under:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Name
Adnan Ahmed Yousif
Tariq Mahmood Kazim
Shafqat Ahmed
Abdul Rehman Shehab
Nadeem Amjad Khan
Abdul Ghaffar Fancy
Nadeem Ul Din Ahmad
Designation
Chairman
Deputy Chairman
Chief executive officer
Director
Director
Director
Director
Shariah Board
Name
Designation
Justice (R) Khalid-ur-Rehman Khan
Chairman shariah board
Shaikh Esam M. Ishaq Abdul Rehman

Ishaq
Member shariah board
Mufti Abdullah Ul Haq Siddique
Resident shariah board member
VISION, MISSION & CORE VALUES
Our Vision
We
believe
that
society
needs
fair
and
equitable financial
system which rewards effort and contributes to the development of the

community.
Mission Statement
To meet the financial needs of communities across the world
by conducting business ethically in accordance with the Shariah, practicing
the highest professional standards and sharing the mutual benefits with the
customers, staff and shareholders who participate in our business success.
Core Values
Partnership Our shared beliefs create strong bonds that form the
basis of long term relationships with customers and staff.
Driven We have the energy and perseverance it will take to make an

impact in our customers lives and for the greater good of the society.
Neighborly We value and respect the communities we serve. Our

doors are always open; our customers always experience a warm-hearted,
hospitable welcome and accommodating service.
Peace of Mind Our customers are rest assured that their financial
interests are being managed by us to the highest ethical standards.
MARKETINGS FOUR PS
Marketing your business is about how you position it to satisfy your

markets needs. There are four critical elements in marketing your products
and business. They are the four Ps of marketing.
Product The right product to satisfy the needs of your target
customer.
Price The right product offered at the right price.
Place The right product at the right price available in the right place
to be bought by customers.
Promotion Informing potential customers of the availability of the
product, its price and its place.
Product
Product refers to the goods and services you offer to your customers.
Apart from the physical product itself, there are elements associated with
your product that customers may be attracted to, such as the way it is
packaged. Other product attributes include quality, features, options,
services, warranties, and brand name. Thus, you might think of what you
offer as a bundle of goods and services. Your products appearance, function,
and support make up what the customer is actually buying. Successful
managers pay close attention to the needs their product bundles address for
customers. Your product bundle should meet the needs of a particular target
market. For example, a luxury product should create just the right image for
customers who have everything, while many basic products must be
positioned for priceconscious consumers. Other important aspects of product
may include an appropriate product range, design, warranties, or a brand
name. Customer research is a key element in building an effective marketing
mix. Your knowledge of your target market and your competitors will allow
you to offer a product that will appeal to customers and avoid costly mistakes
If you are considering starting a new business or adding a new product, then
make sure the product bundle will fit your businesss strengths and
weaknesses, and that it will provide an acceptable risk/return tradeoff. For

instance, if your business is very good at timely response to customers, then
timely service should be an important part of your product bundle. Think long
term about your venture by planning for the ways you can deepen and
broaden your product bundle. For instance, you may be able to take
advantage of opportunities to add value through processing, packaging, and
customer service. Other future growth may allow you to offer your product to
different customers. Start-up businesses are most successful when they
concentrate their efforts on one product or one market, like a restaurant or a
car service center does. Later growth may occur in the same location or may
be in different geographic regions. A different type of growth would be a
diversification of products, with your business offering related products.
Offering a whole range of products is most successful if the raw materials,
production processes, and distribution methods are similar, which means you
do not have to acquire new suppliers, skills and equipment, and distribution
methods.
Price
Price refers to how much you charge for your product or service.
Determining your products price can be tricky and even frightening. Many
small business owners feel they must absolutely have the lowest price
around. So they begin their business by creating an impression of bargain
pricing. However, this may be a signal of low quality and not part of the
image you want to portray. Your pricing approach should reflect the
appropriate positioning of your product in the market and result in a price
that covers your cost per item and includes a profit margin. The result should
neither be greedy nor timid. The former will price you out of the market;
pricing too low will make it impossible to grow. As a manager, you can follow
a number of alternative pricing strategies. In the next column are eight
common pricing strategies. Some price decisions may involve complex
calculation methods, while others are intuitive judgments. Your selection of a
pricing strategy should be based on your product, customer demand, the
competitive environment, and the other products you will offer.
Cost-plus Adds a standard percentage of profit above the cost of producing

a product. Accurately assessing fixed and variable costs is an important part
of this pricing method.

Value-based Based on the buyers perception of value (rather than on your
costs). The buyers perception depends on all aspects of the product,
including non-price factors such as quality, healthfulness, and prestige.

Competitive Based on prices charged by competing firms for competing
products. This pricing structure is relatively simple to follow because you
maintain your price relative to your competitors prices. In some cases, you
can directly observe your competitors prices and respond to any price
changes. In other cases, customers will select vendors based on bids
submitted simultaneously. In those cases, gathering information will be more
difficult.
Going-rate A price charged that is the common or going-rate in the
marketplace. Going-rate pricing is common in markets where most firms have
little or no control over the market price.

Skimming Involves the introduction of a product at a high price for affluent
consumers. Later, the price is decreased as the market becomes saturated.

Discount Based on a reduction in the advertised price. A coupon is an
example of a discounted price.

Loss-leader Based on selling at a price lower than the cost of production to
attract customers to the store to buy other products.

Psychological Based on a price that looks better, for example, $4.99 per
pound instead of $5.00 per pound. After you decide on your pricing strategy,
the amount of money you will actually receive may be complicated by other
pricing aspects that will decrease (or increase) the actual amount of money
you receive. You will also have to decide how to determine:

Payment period Length of time before payment is received.
Allowance Price reductions given when a retailer agrees to undertake
some promotional activity for you, such as maintaining an in-store display.
Place
Place refers to the distribution channels used to get your product to
your customers. What your product is will greatly influence how you
distribute it. If, for example, you own a small retail store or offer a service to
your local community, then you are at the end of the distribution chain, and
so you will be supplying directly to the customer. Businesses that create or

assemble a product will have two options: selling directly to consumers or
selling to a vendor.
Direct Sales
As a producer, you must decide if supplying direct is appropriate for
your product, whether it be sales through retail, doorto-door, mail order, ecommerce, on-site, or some other method. An advantage of direct sales
would be the contact you gain by meeting customers face to face. With this
contact you can easily detect market changes that occur and adapt to them.
You also have complete control over your product range, how it is sold, and at
what price. Direct sales may be a good place to start when the supply of your
product is limited or seasonal. For example, direct sales for many homeproduced products can occur through homebased sales, markets, and stands.
However, direct sales require that you have an effective retail interface with
your customers, which may be in person or electronic. If developing and
maintaining this retail interface is not of interest to you or you are not good
at it, you should consider selling through an intermediary.
Reseller Sales (Sales through an Intermediary)

Instead of selling directly to the consumer, you may decide to sell
through an intermediary such as a wholesaler or retailer who will resell your
product. Doing this may provide you with a wider distribution than selling
direct while decreasing the pressure of managing your own distribution
system. Additionally, you may also reduce the storage space necessary for
inventory. One of the most important reasons for selling through an
intermediary is access to customers. In many situations, wholesalers and
retailers have customer connections that would not be possible to obtain on
your own. However, in selling to a reseller you may lose contact with your
end consumer. In some cases, you may also lose some of your company
identity. For example, your distributor may request that your product be sold
under the resellers brand name. One factor that may influence whether you
can find an intermediary to handle your product is production flow.
Wholesalers want a steady year-round supply of product to distribute. If you

can deliver a steady year-round supply that is of consistent quality, then
selling through an intermediary may be a good strategy for you.
Promotion
Promotion refers to the advertising and selling part of marketing. It is
how you let people know what youve got for sale. The purpose of promotion
is to get people to understand what your product is, what they can use it for,
and why they should want it. You want the customers who are looking for a
product to know that your product satisfies their needs. To be effective, your
promotional efforts should contain a clear message targeted to a specific
audience reached via an appropriate channel. Your target audience will be the
people who use or influence the purchase of your product. You should focus
your market research efforts on identifying these individuals. Your message
must be consistent with your overall marketing image, get your target
audiences attention, and elicit the response you desire, whether it is to
purchase your product or to form an opinion. The channel you select for your
message will likely involve use of a few key marketing channels. Promotion
may involve advertising, public relations, personal selling, and sales
promotions. A key channel is advertising. Advertising methods to promote
your product or service include the following.
Radio Radio advertisements are relatively inexpensive ways to

inform potential local customers about your business. Mid-to-late week
is generally the best time to run your radio ad.

Television Television allows access to regional or national audiences,
but may be more expensive than other options.

Print Direct mail and printed materials, including newspapers,
consumer and trade magazines, flyers, and a logo, allow you to explain
what, when, where, and why people should buy from you. You can send
letters, fact sheets, contests, coupons, and brochures directly to new
or old customers on local, regional, or national levels.

Electronic Company Web sites provide useful information to
interested consumers and clients. Password-protected areas allow
users to more intimately interact with you. Advertisements allow broad
promotion of your products. Direct e-mail contact is possible if you
have collected detailed customer information.

Word of Mouth Word of mouth depends on satisfied customers (or
dissatisfied
customers)
telling
their
acquaintances
about
the
effectiveness of your products.

Generic: Generic promotion occurs when no specific brand of
product is promoted, but rather a whole industry is advertised. For
instance, generic advertising is commonly found for milk, beef, and
pork.
BRANCH OF AL BARAKA BANK IN SAHIWAL
The branch of Al Baraka Bank (Pakistan) Limited is situated at 183-B/7,

Sarwar Shaeed Road, Kutchery Road Sahiwal.
Phone: 040-4228267-9
Fax: 040-4228268
Staff of the Branch
Manager
Mr. Masood Nazir
Remittance
Miss Mehreen Fatima
Operating Incharge
M. Raffique
Major Operations at Al-Baraka Bank:

Under this heading a number of topics are discussed. The major topics of this
section are:
Retail Banking
Deposit Accounts
Consumer Finance
Services
Business Banking
RETAIL BANKING
Deposit Accounts
1. Al Baraka Basic Banking Account
An Islamic Basic Banking Account designed for those customers who
wish to avail all the facilities of Islamic Current Account without worrying
about the minimum balance and other requirements associated with this type
of account.
Salient Features
A Pak Rupee current account with no minimum balance requirements
No profit / return will be paid to the depositor on the balance

maintained in the account
Can be opened with as low as Rs. 100/=
No minimum balance requirement and no penalty for low balances
Unlimited and free access to cash withdrawals through ABPLs ATM

network.
Transactions on non-ABPL ATMs will be charged as per the Schedule of

Charges
Statement of account will be issued once a year
Other services will be provided as per prevailing Schedule of Charges
Additional benefits such as e-Statement, 24/7 Phone Banking, SMS

Banking
2. Al Baraka Current Account
Al Baraka account has been developed to help/assist you in with your

day to day business and personal banking needs with convenience and
reliability.
Salient Features
Available in PKR and other major Foreign Currencies like USD, GBP,
EURO & AED
Free from any minimum balance charges
Unlimited deposits and withdrawals
Free ATM card with unlimited access to all ATMs, nationwide.

Banking
Islamic Concept
Al Baraka Current Account is based on the Islamic principle of Qarz,
whereby the customer is the lender and the bank is the borrower. Customer
funds are invested with utmost care in halal business ventures only, and are
payable, on demand, with neither any addition nor penalty.
Eligibility criteria
Individuals (18 years & above)

Sole Proprietor
Partnerships
Companies
Clubs / Societies / Associations / Trusts
3. Al Baraka Savings Account

Al Baraka Savings Account comprises of all facets of an investment i.e.
income, security and growth. It has been developed to suit the requirements
of individuals and business entities.
Salient Features
Available in PKR and other major currencies like USD, GBP, EURO &
AED
Free from any minimum balance charges
Profit is calculated on monthly average basis
Profit will be paid every month
Enjoy higher profits on higher balances
Free ATM card with unlimited access to ATM Network, nationwide

Banking
Islamic Concept
Al
Baraka
saving
account
is
based
on
the
Islamic
concept
of Mudarabah. Under this arrangement the customer is Rab-ul-Maal (Investor)

and the bank is Mudarib (Fund Manager). Customer deposit is invested
in profitable business ventures which are legal and Shariah compliant. The
profit/loss is shared on a pre determined ratios. As Fund Manager, the bank is
entitled to a part of the profit, whereas profit distribution amongst the
depositors and shareholders is made according to the weightages assigned to
their investment at the beginning of each month.
Eligibility Criteria
Individuals (18years & above)
Sole Proprietor
Partnerships
Companies
Clubs / Societies / Associations / Trust
4. Al-Baraka Khazana Account

Are you looking for higher profits? If yes then this account is for you,
where profit is calculated on average monthly balance product basis and
distributed on a monthly/quarterly basis.
Salient Features
Minimum initial investment of Rs. 100,000/-
Available only in Pak Rupees
Tiered profit structured
Profit is paid on monthly/quarterly basis and calculated on a average

monthly balance product basis
Enjoy higher profits on higher balances

Banking, ATM/Debit Card
Islamic Concept
Al
Baraka
Khazana
account
is based
on
the
Islamic
concept

Sole Proprietor
Partnerships
5. Al Baraka Term Deposit

Al Baraka Term Deposit is a perfect solution for customers seeking high
profits in a Shariah compliant way which you can secure your future. Our
sales officers will be happy to assist you in designing an investment plan for
you and for your loved ones.
Salient Features
Minimum initial Investment: Rs. 25,000/-
Available in PKR and other major currencies like USD, GBP, EURO &
AED
Available tenures: 1 month, 3 months, 6 months, 1- 5 years
Profit payment options: Quarterly, Bi-Annually, Annually or Maturity
Free ATM/Debit Card with unlimited access to ATMs nationwide.

Banking
Islamic Concept
Al Baraka Term Deposit is based on the Islamic concept of Mudarabah.
Under this arrangement the customer is Rab-ul-Maal (Investor) and the bank
is Mudarib (Fund Manager). Customer deposit is invested in profitable
business ventures which are legal and Shariah compliant. The profit/loss is
shared on a pre determined ratios. As Fund Manager, the bank is entitled to a
part of the profit, whereas profit distribution amongst the depositors and
shareholders is made according to the weightages assigned to their
investment at the beginning of each month.
Sole Proprietor
Partnerships
Companies
6. Al Baraka Mahana Amadani

Are you interested in monthly profit returns? Then why not go for our
Mahana Amadani which gives you competitive profit earnings on your
savings. With a minimum investment/ savings of Rs. 50,000, you can enjoy
monthly returns.
Salient Features
Profit Calculation: Monthly
Profit payment options: Monthly
Available in Pak Rupee
Tenure: 1 Year to 5 Years
Free ATM/ Debit card with unlimited access through ATMs nationwide.

Banking
Islamic Concept
Al Baraka Mahana Amadani is based on the Islamic concept

Sole Proprietor
Partnerships
Companies
7. Al Baraka Business Plus

Al Baraka Business Plus account is the premium choice for your
business.
By
simply
maintaining
Rs.
100,000/-,
you
can
avail
free services with the Al Baraka Business Plus Account. Nominal profit is
calculated on monthly average balance. Moreover, you can benefit from the
dedicated team of financial advisors who will help you to take advantage of
the services and benefits associated with this account and at the same time
they will be happy to assist you in meeting your any other requirement of
business.
Free Services:
Cheque Books
ATM Card
Pay Orders
Duplicate Bank Account Statements
Hold Mail Facility
Online Banking Transactions
Additional benefits such as e-Statement, 24/7 Phone Banking & SMS

Banking
Islamic Concept
Al Baraka Business Plus is based on the Islamic concept of Mudarabah.
Under this arrangement the customer is Rab-ul-Maal (Investor) and the bank
is Mudarib (Fund Manager). Customer deposit is invested in profitable
business ventures which are legal and Shariah compliant. The profit/loss is
shared on a pre determined ratios. As Fund Manager, the bank is entitled to a
part of the profit, whereas profit distribution amongst the depositors and
shareholders is made according to the weightages assigned to their
investment at the beginning of each month.
Individuals (18years & above)
Self Employed
Traders
Sole Proprietor
Partnerships
8. Al Baraka Senior Citizens Account

Al Baraka Senior Citizens Account is developed to empower senior
citizens to independently carry out the day- to- day banking transactions with
confidence. This account is suitable for senior citizens who wish to have
healthy returns on their savings. Al Baraka Senior Citizens Account comes
along with a wide range of free services and benefits.
Features and Privileges
We have included a bundle of value added services which you can enjoy free
of cost with the Senior Citizen Account.
Available in Local Currency only
Profit calculated on the basis of weightages for different tiers to

benefit higher balance with higher return.
Profit calculations on daily balance and credited in the account
on monthly basis.
No minimum or maximum balance requirement.
Unlimited deposits and withdrawals.
Projected higher returns on maintaining the balance of PKR

250,000 in the account, otherwise normal savings rate will be
applicable.
Value added services i.e. Al Baraka Union Pay Debit Card, Phone
Banking, SMS Banking, e- statements, Duplicate Account statements

are offered free of cost.
Complimentary first cheque book of 25 leaves.
Concessional rates on annual locker rentals and Pay Order/

Demand Draft charges will be offered.
All other charges as per Banks schedule of charges.
24x7x365 Phone banking at a call away. Dial now: 111-113-442.
Mudarabah
Al Baraka Senior Citizens Account is offered on the basis of Mudarabah
principles of Islamic Banking. Mudarabah is a special kind of partnership
where one partner gives money to another for investing in Shariah compliant
avenues. The investment comes from the first partner who is called Rabb-ulmal
(Customer),
while
the
management
and
work
responsibility of the other, who is called Mudarib (Bank).
is
an
exclusive
The Bank will announce weightages and profits sharing ratios 3 days
before the beginning of the month. The Bank will share the profit at the gross
income level and will subsequently credit the proportionate profit in the
customers account at the end of the month. In case of loss, the customer will
bear the loss as per the ratio of his investment.
Disclaimer
Al Baraka Senior Citizens Account is for customers aged 60 years &
above. In case of joint account, one account holder should be above 60 years
of age and other should not be minor (less than 18 years of age).
9. Al Baraka Mahana Barkah Account

If you are salaried, self employed, professional or even retired, this is
the savings account for you. Ideal for individuals who wish to:
Place their savings in a Shariah compliant savings scheme.
Save on regular basis and expect good returns on daily balance.
Have the liberty of having no limitation on cash withdrawals.
Invest with an absolute peace of mind!
Features and Privileges
To qualify for Al Baraka Mahana Barkah Account profit rate

minimum balance of PKR 10,000 and maximum of PKR 5.0 million is
required to be maintained during that month otherwise normal savings
account rate will be applicable.
Profit calculation on daily balance and credited in the account on

monthly basis.
Free first Al Baraka Union Pay Debit Card.
Free e- statement.
Free Phone banking services through which you can get pay
orders,
cheque
books,
stop
payments, ATM card
replacement,
duplicate bank statements at an exceptional discount.

All other charges as per banks Schedule of Charges.
Mudarabah
Al Baraka Mahana Barkah Account is offered on the basis of Mudarabah
principles of Islamic Banking. Mudarabah is a special kind of partnership
where one partner gives money to another for investing in Shariah compliant
avenues. The investment comes from the first partner who is called Rabb-ulmal
(Customer),
while
the
management
and
work
is
an
exclusive
responsibility of the other, who is called Mudarib (Bank).

The Bank will announce weightages and profits sharing ratios 3 days
Latest profit sharing ratios and weightages are available on our website or
can be obtained from any branch of Al Baraka Bank.
10.
Tifl-Young Savers Account
Tifl- Young Savers Account is being offered to youngsters to help them

learn the importance of saving at an early age. Tifl-Young Savers Account is
designed in such a way that it aims to become every youngsters first bank
account. It caters to the new generations future financial needs gradually
and conveniently. Through the benefits of this account, youngsters are
motivated to save more because of the returns they will get based on their
savings.
Key Features
Specially designed for children and youngsters to enjoy the

benefits of Islamic Banking.
Tifl-Young Savers Account can be opened for any child and
teenager aged between one day and 18 years.

Based on Islamic principles of Mudarabah and under the
supervision of proficient Shariah Committee.
Available in Local Currency.
Profit calculation on daily balance basis in your account.
Profit accredited to your account on quarterly basis.
No limit for minimum or maximum balance.
Unlimited deposits and maximum of 2 withdrawals (over the

counter) are allowed within a calendar month.
Free Al Baraka Union Pay Debit Card
Mudarabah
Al Baraka Tifl- Young Savers Account is offered on the basis of
Mudarabah principles of Islamic Banking. Mudarabah is a special kind of
partnership where one partner gives money to another for investing in
Shariah compliant avenues. The investment comes from the first partner who
is called Rabb-ul-mal (Customer), while the management and work is an
exclusive responsibility of the other, who is called Mudarib (Bank).
The Bank will announce weight ages and profits sharing ratios 3 days
CONSUMER FINANCE
ABPL Auto Ijarah
Al Baraka Islamic Auto Finance is one of the most distinctive Shariah

compliant products offered by Al Baraka Bank (Pakistan) Limited. It allows you
to get a vehicle of your choice with comfort and complete peace of mind. This
product is ideal for individuals looking for car financing without compromising
their beliefs and values. Al Baraka Islamic Auto Finance is designed to cater
to all your needs regarding the purchase of a brand new, used or an imported
vehicle for your personal use. Now you can steer yourself onto the right path
effortlessly.
Product Features
Shariah compliant.
Quick processing.
Most affordable rentals.
No upfront Takaful (Islamic Insurance) charges.
No upfront registration charges.
No upfront rentals before delivery of the vehicle.
Payable in tenure of 24 to 60 months.
Minimum processing charges.
Eligibility Criteria Salaried
Minimum continuous working experience of 2 years with a minimum of

6 months with the current employer.
Minimum net monthly income of Rs. 35,000/-
Age between 22 to 62 years (62 years of age at the time of maturity of

facility).
Self Employed Professionals / Businesspersons
In business for a minimum continuous period of 3 years.
Minimum net monthly income of Rs. 50,000/-.
Nature of business to be as per Shariah guidelines.
Age between 24 to 65 years (65 years at the time of maturity of

facility).
Rahnuma Travel Services

Rahnuma
Travel Services is
value
added
product
exclusively
designed for customers who wish to avail complete travelling solutions with
ease, reliability and convenience.
Rahnuma Travel Services offers one window travel solution including
VISA processing, HOTEL ACCOMMODATION transfers and much more to our
valued customers. Al Baraka Bank Pakistan Limited has joined hands with
leading travel agents to bring unmatched travel products for its customers
that are not only Riba-free but affordable and convenient at the same time.
Complete travel service packages are available for various destinations i.e.
Umrah, Hajj, Dream Destinations for Dubai & Malaysia.
Salient Features
0% profit on financing
Easy installment plan of 6 & 12 months
No prepayment charges
No Security Deposit
Easy documentation & Fast Processing
Benefits
Shariah Compliant & Riba-free.
No Premium on package costs.
No Hidden Charges.
Easy payment options.
Packages:
Rahnuma Hajj Packages 2014
Hajj 2014 17 Days
Hajj 2014 25 Days
Hajj 2014 40 Days
Rahnuma Umrah Packages 2015
Rahnuma Super Economy Package-2015
Rahnuma Economy Package-2015
Rahnuma Economy Plus Package-2015
Rahnuma Premium Package-2015
Rahnuma Standard Package-2015
Rahnuma Dream Destinations 2014
Rahnuma Malaysia Package 2014
Rahnuma Dubai Package2014
Rahnuma Thailand Package 2014 (8 Nights / 9 Days)
Rahnuma Thailand Package2014 (6 Nights / 7 Days)
Sarparast Family Takaful Plan

Plan
FAQ's
Disclaimer
Partnering to safeguard your future

Al Baraka Bank (Pakistan) Ltd. in association with Pak-Qatar Family Takaful
Limited is offering an exclusive product Sarparast Family Takaful Plan.
Sarparast is a Shariah Compliant savings and investments plan exclusively
designed to cater to your Takaful needs.
Illustrative Example:
Every customer has a different need, so we have a variety of investment
plans to choose from. You may wish to save for
Your daughters marriage
Higher education of your child
Plan to perform Hajj next year or plan a vacation anywhere in the

world!
Al Baraka Sarparast caters to the diverse needs and offers the best takaful
plan:
PROJECTION OF BENEFITS
Age
Sum Covered
Annual Contribution
35
Rs. 1.5 Millions
Rs. 100,000
Plan Term
15 Years
Frequency
Annual
Maturity Benefits at 7 % assumed

return
1.9 Millions

return
2.3 Millions

return
2.7 Millions
This is based on assumption and subject to actual experience. Conditions

apply.
Key Features:
Saving for long-term needs in the future.
Regular contributions invested in a diversified portfolio of Islamic funds

ranging from Sukuk to Mutual Funds, based on the customers risk
appetite.
Flexible plans in terms of frequency of payment.
Takaful cover allows family to receive funds, in case of death of the

participant.
Al Barakas Sarparast, safeguards your future, while giving you the
financial freedom you deserve. It helps you plan necessary events of your life
from marriage to education, retirement to vacations or pure savings in

accordance with the Islamic principles.
As you are Al Barakas account holder we offer the following benefits:
Better access to a wider range of Shariah Compliant financial

products/services through a one-stop shop experience; Takaful plan
issued on the spot.
Processing on copy of CNIC only.
No medical examination required.
Minimum processing time.
24/7 customer service available through Al Baraka Phone Banking.
Maximum application acceptance.
Additional Benefits:
Contribution increase and decrease*
Switching of Investment Strategies*
Partial withdrawal*
Payment deferral*
Plan
FAQs
Disclaimer
Sarparast Frequently Asked Questions
How is it shariah Compliant?

It is our commitment to put our customers values foremost, hence
providing them with the banking solutions that are in line with their beliefs.
ABPL products and services are approved by the banks Shariah Advisor
Justice (R) Khalil-ur-Rehman Khan, who has served as Chairman on the
Shariat Appellate Bench of the Supreme Court of Pakistan and has been the
Rector of the International Islamic University, Islamabad. He is assisted by
Mufti IftikharBaig and Mufti Abdullah Najeeb as deputy Shariah Advisor.
Why should I avail the AL Baraka Sarparast- Family Takaful

Plan?
Al Baraka Sarparast helps you save that gives you market comparable
returns in order to have the required resources to carry out your future plans,
whether it is for higher education or marriage of your child or the purchase of
your house. Simultaneously you enjoy a Takaful cover, which would allow
your family to have the required funds available in case of death.
What is the minimum and maximum contribution that I can

make?
The minimum annual contribution under the plan is Rs. 56,000;
whereas there is no limit to maximum contribution.
What are the applicable ages and minimum duration of this

plan?
Minimum joining age is 18 years.
Maximum joining age is 60 years.
Minimum duration is 7 years.
Maximum age at maturity cannot exceed 70 years.
How soon can I get this plan?

Mostly Al Baraka Sarparast cases are approved within 30 minutes and
you can confidently possess your tailor-made Takaful plan.
Does the plan offer any free look period?

14 days free look period as per the SECP requirements.
Can I access* my savings when I need them?

Yes, you can access your Al Baraka Sarparast investment account as and
when you wish.
Is there any medical examination* required before I can buy

this plan?
For Al Baraka Sarparast, there is no medical requirement.
Can I make any additional contribution* to the Takaful Plan?

Yes, you can make contributions at any time during the plan term. The
minimum amount of this must be PKR 56,000.
Who handles claims?

Claims will be submitted at any branch of Al Baraka and they will be
processed at Pak-Qatar Family Takaful.
What is Surplus Sharing and how does that make a difference?

Surplus sharing is a key concept in Takaful and differentiates Takaful
from conventional insurance. All contributions paid under Takaful are meant
to guarantee two benefits; one a death benefit that is guaranteed by
contributions to the Waqf fund and the other is the maturity value that is
steadily built up through contributions to your Al Baraka Sarparast
investment account. In case of any surplus in the Individual Family Takaful
Participants Fund, this surplus is distributed among the participants in
proportion to your net contribution into fund. This surplus amount will be
given to you in the shape of additional units being added to your Al Baraka
investment account.
What if I have any queries or complaints?
You can contact any branch of Al Baraka or call at the call center at (021) 111
11 3442.
What are the benefits payables under this plan?
Maturity Benefit:
At maturity of the Al Baraka Sarparast plan you will receive the cash value in
your investment account.
Death Benefit:
In case of death, during the term of the plan, the sum covered or the
cash value, whichever is higher, will be paid to the beneficiary of the
deceased.
Investment Management:
Al Baraka Sarparast Family Takaful Plan has two investment
strategies for you to choose from. These investments are be managed by
Pak-Qatar Family Takaful. You have the option to decide what proportion of
the investment should go in which strategy and this choice may be adjusted
at any time during the year without any charges for up to 3 switches a year.
Two investment strategies are:

SARPARAST CASH STRATEGY: Primarily placements in Islamic Bank, Sukuks,
etc.
SARPARAST EQUITY STRATEGY:
Primarily investments made in Shariah
Compliant Mutual Funds and Shariah Compliant Equity.

Shariah Committee:
At Al Baraka Bank (Pakistan) Ltd, products and services are approved by
Banks Shariah Committee, which consists of renowned Shariah Scholars.
Plan
FAQ's
Disclaimer
The underwriter for Al Baraka Sarparast Family Takaful Plan is Pak

Qatar Family Takaful Ltd.
Al Baraka Bank (Pakistan) Ltd. is only acting as a distributor in

providing this facility and hence cannot be held responsible for settling
claims emanating from this scheme or for the approval or rejection of
any claim or for any act or omission on the part of the Insurer.
The actual values may be higher or lower than the once shown above,
depending upon the performance of the underlying investment.
A description of how the contract works is given in the Participants

Membership Document (PMD).
Pak Qatar family Takaful Limited will directly be responsible for all the
liabilities under this said policy.
The rate of return in the projected cash flows is not guaranteed and it
is not the upper or lower limit of what you might get back.
The final cash value of Al Baraka Sarparast Family Takaful Plan is

dependent
on
number
of
factors
including
future
investment
performance. The cash value and benefits shown assume that

premiums are paid in full when due.
SERVICES
1.
Phone Banking
Imagine a Bank where your queries are addressed immediately and
your needs are taken care of instantly. Now you can enjoy similar standard of
banking services through Al Barakas dedicated Phone Banking Centre. The
centre is equipped with cutting edge technology and skilled Phone Banking
Officers who help you with your queries and transactions 24 hours a day,
seven days a week. Make your banking experience completely secure, cost
effective* and effortless by using the ABPL Phone Banking facility. Dial 111113-442 from your home, office or anywhere else in the world using a
touchtone phone and avail ABPL banking assistance at your convenience.
Who can apply?
Individual Account Holders
Joint Account Holders (either or survivor)
Sole Proprietor
2.
SMS Banking
Al Baraka Bank (Pakistan) Limited now provides a banking solution that
takes into account the way you live. SMS Banking is a smart way to access
your account(s) especially for people on the go. We provide you with
immediate access to your account(s) 24 hours a day, 7 days a week, so no
matter where you are or what time it is, you are always connected.
No more waiting
in
line,
get
instant
access
whenever,
wherever.
Register yourself for SMS Banking and get complete control of your account
from wherever you are because here at ABPL, customers comfort is our
number one priority.
Use Al Barakas SMS Service for:
Account balance inquiry
Mini statement (last five transactions Credit/Debit)
Cheque book request
PIN change request
On the spot transaction credit / debit alerts about your account on any
mobile phone you carry- avoiding any misuse of account.
Up-to-date products and services, promotions, announcements and

much more
Individual Account Holders
Joint Account Holders (Either of Survivor) (1 Person Only)
Sole Proprietorship
How to Register
Complete the attached SMS Banking Registration form and submit it at

your nearest Al Baraka Branch.
A welcome message will be sent to you by the next working day

advising you to contact Phone Banking using your registered SIM on
111-113-442 for SMS PIN generation.
Upon generation of your SMS PIN, your registration process will be

completed.
3.
Statements
Access your account (s) with the click of a button. Al Baraka
Bank (Pakistan) Limited (ABPL) introduces Statement that allows you to read
or print and reconcile your deposit account(s) statements online. Available for
all the rupee and foreign currency account holders, all you need is access to
your e-mail account to receive your Statement.
Statement simplified
Our customers now have the option to receive their bank statements
via e-mail on a daily, weekly, fortnightly, monthly, quarterly or half yearly
basis. Choose from the various free-of-cost options available to promote a
paper-free environment.
Security
Printed statements can be misplaced. Statements stay in your inbox
which makes it easier for you to organize and access your account details
anywhere and anytime.
ABPLs Statement has been made digitally secured through VeriSign.
IBFT Network
Allied Bank Limited
Askari Bank
Bank Alfalah
Bank Al Habib
Bank Islami Pakistan
Bank of Punjab
Burj Bank
Citibank Pakistan
Dubai Islamic Bank
Faysal Bank
HBL
JS Bank
KASB
Meezan Bank
NIB Bank
Silk Bank
Sind Bank Limited
Soneri Bank
Standard Chartered
Summit Bank
Tameer Bank
United Bank
4.
Utility Bill Payments through ATMs

With UBPS, Al Baraka customers will now be able to pay their Utility
Bills through our expanding network of ATMs, at their convenience without

fretting over parking space or bank timings.
Al Baraka account holders can enjoy round the clock convenience of
paying utility bills via any of the Al Baraka ATMs across the country.
Customers can now avail hassle free yet secure payments of utility bills of the
following companies by simply walking to the nearest Al Baraka ATM:
Sui Southern Gas Company Limited:
SSGC,
Karachi Electric supply Corporation:
KESC,
Lahore Electric Supply Company:
Sui Northern Gas Pipeline Limited:
LESCO
SNGPL
Furthermore, we are in the process of adding more utility companies to

our UBPS network.
Things you need to know to use UBPS:
There is no prior registration requirement to use UBPS on ATMs, you

will only need your Al Baraka Union Pay Debit Card to start using this
service.
You can pay multiple bills from a single Al Baraka Account.
There is no charge to use this service on ATMs.
5.
Safe Deposit Lockers

ABPL lockers are governed by the Islamic concept of Amanat. When
you trust us by keeping your valuables with us, we fulfill our responsibility of
taking care of them very sincerely. Its not just a matter of your valuables,
what is most valuable to us, is safe keeping your trust.
It is our commitment to put your values foremost, hence providing you
with banking solutions that are in line with your beliefs.
To facilitate our valued account holders, a safe deposit locker facility is
available at selected branches. Please contact 111-113-442 for further
details.
Salient Features
Comfortable surroundings
State of the art security arrangements
Courteous and helpful locker custodian
Available in three convenient sizes to suit your needs
Free Takaful cover depending upon the size of your locker
Convenient access timings from 9 am to 5 pm (excluding Friday &

Saturday)
Rent-free lockers are also available (Conditions apply)
Levies
Fees and charges will be levied according to the prevailing Schedule
of Bank Charges, whereas taxes and Zakat will be applicable according to
Government regulations and directives of State Bank of Pakistan.
BUSINESS BANKING
1.
Corporate & Investment Banking

The corporate environment in Pakistan continues to evolve witnessing
dynamic growth and innovation across various business sectors. With a

strong focus on the business requirements driven by industry insight,
technological innovation and highest commitment to service quality, ABPLs
Corporate Banking aims to provide Shariah compliant products and solutions
for its corporate customers.
We believe in nurturing and developing long-term relationships with
our customers by understanding their unique financing requirements and
offering the most appropriate financing solution.
We offer a comprehensive suite of corporate solutions that meet the
requirements of our customers. Our expertise includes:
Thorough understanding of our customers business needs
In-depth knowledge of varied industry sectors in Pakistan
Skill set in offering the right product as per the Shariah rulings
Guidelines:
In line with our vision, following fund based products help our
customers achieve their short to long term business objectives:
Working Capital Finance
Medium to Long Term Financing
Project Financing
Islamic Export Refinance
Import and Export Financing
Trade Services
2.
Commercial & SME Banking
At Al Baraka Bank (Pakistan) Ltd, CBSME Group is engaged in providing

all sorts of business solutions to Commercial, Small and Medium Sized
Enterprises to meet both their short and long term business
requirements through various Shariah compliant products and services.
We provide working capital finance through MURABAHA , SALAM and
ISTISNA and for long term requirements, we offer DIMINISHING
MUSHARAKA and
IJARAH for purchase of plant & machinery and
Vehicles.
We also facilitate our SME clients in handling their cross border trade
transaction through import & export in a timely and cost efficient
manner.
3.
Public Sector and Institutional Relations

Public Sector and Institutional Relationship Department has been
established recently to facilitate each business by creating opportunities,

opening new venues, fetching growth in banking relationships and also
to develop new products and services for customers.
We are working with the diversified approach to get the maximum
benefits from these sectors to establish relationship with all important
organizations throughout the country. Additionally, the department is
responsible to create awareness about Islamic Banking. The main focus of the
department is to establish and maintain relationship with the Public Sector
and other significant Institutions, which include all Government Ministries,
Semi Government Organizations, Civil Bodies, Institutional setups, Provincial
bodies, Embassies, Chamber of Commerce and all other large organizations
in Pakistan.
We also focused on some important sectors as given below:
Energy Sector
Regulatory Authorities
Health & Education
Telecommunication
Pakistan Armed Forces
Semi Government & Private Institutions
NGOs
4.
Financial Institution
The Financial Institutions (FI) department at Al Baraka is responsible for
establishing
and
maintaining
banking relationships with
international
correspondent banks and local banks. The scope of the FI department covers
all trade related activities as well as managing nostro / vostro relationships.
Treasury
ABPL Treasury provides all types of Shariah Compliant Products which
other Islamic Banks are providing in the area of Export/Import. ABPL Treasury
provides very competitive rates for all transactions which also can be gauged
by ever increasing trade volume.
Following are few products which ABPL Treasury uses and offers to its
customers to cater to their day to day banking needs.
Foreign Exchange
Sale/Purchase of foreign currency from Exporters/Importers, Inter Bank

Market both in Ready and Forward
Encashment of Foreign Currencies
Sale Purchase of Foreign Currency in interbank market
Money Marketing
Interbank Wakala
Interbank Musharika
Local Currency Deposit placement Daily product/TDR
Foreign Currency Deposit placement Daily product/TDR
IPS accounts
CAPITAL Market
Local Currency Sukuk
Foreign Currency Sukuk
Investment in Mutual Fund Listed stocks etc.
ALBARAKA BANK (PAKISTAN) LIMITED

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
2014
2015
.(Rupees 000)
ASSETS
Cash and balance with treasury banks
Balances with other banks
Due from financial institutions
Investments
Islamic financial and related assets
Operating fixed assets
Deafened fax assets
Other assets
LIABILITIES
Bill payable
Due to financial institutions
Sub-ordinate loans
Liabilities against assets subjects to finance
lease
Differed fax liabilities
Other liabilities
NET ASSETS
REPRESENTED BY
Share capital
Discount on issuance of share
Reserves
Accumulated loss
3,945,481
7,577,188
26,179,41
8
29,155,47
6
2,798,165
1,030,951
1,858,204
72,544,87
9
4,460,257
7,409,620
80,000
15,617,58
9
27,652,68
7
3,030,269
1,029,055
1,484,187
60,763,66
4
451,030
1,736,120
61,559,02
6
-
427,600
2,756,892
49,324,20
9
-
5,123
19,303
2,269,097
66,020,09
7
2,116,583
54,644,58
7
6,524,483
6,119,077
8,935,200
(767,290)
82,074
(1,723,72
8)
6,526,256
8,935,200
(767,290)
(2,052,02
4)
6,115,886
Surplus/(deficit) on revaluation of assets - net

of tax
(1,773)
3,191
6,524,483
6,119,077

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2015
2014
2015
..(Rupees 000)
CASH FLOWS FROM OPERATING ACTIVITES
(Loss) / profit before taxation
Adjustments for non-cash and other items:
Depreciation
Depreciation on Ijarah assets field under IFAS 2
Amortsation
Fixed assets written off
Provision / (reversal of provision) against nonperforming Islamic financing
Provision for diminution in the value if
investments
Finance charge leased assets
Provision / (reversal of provision) against other
assets
(Increased) / decrease in operating assets
Due from financial industries
Islamic financial and related assets
Others assets (excluding advance taxation)
Increase / (decrease) in operating liabilities

Bills payable
Due to financial instructions
Deposits and other accounts
Other liabilities
Income tax paid
Net cash inflow from operating activates
CASH FLOWS INVESTING ACTIVITIES
(952,994)
480,702
104,529
894,978
85,316
-
129,818
653,132
95,948
1,501
749,888
(229,204)
52,603
2,018
16,097
24,308
48,441
(48,800)
1,951,852
998,858
828,727
1,109,423
(1,100,000
)
(1,281,839
)
143,089
(2,228,750
)
295,621
255,618
1,719,629
(439,043)
1,8,31,825
(78,024)
523,309
80,000
(1,435,375
)
(810,556)
(2,165,931
)
23,430
(1,020,772
)
12,234,817
152,514
11,389,989
(78,231)
10,255,250
Net addition investments

Net investments in operating fixed assets
Received on disposal of operating fixed assets
net cash outflow in investing activities
(1,070,643
)
(32,303)
11,448
(1,091,498
)
(10,568,80
9)
(861)
5,698
(10,563,97
2)
(21,220)
(38,488)
(21,220)
(588,809)
11,522,66
7
10,933,85
8
(38,488)
(347,210)
Cash flow from financing activities

Payments against assets subject to financial lease
and under Ijara
Net cash outflow on financial activates
Decrease in cash and cash equipments
Cash and cash equipments at beginning of the
year
Cash and cash equipments at end of the year
11,869,877
11,522,667

PROFIT AND LOSS ACCOUNT
2015
..(Rupees 000)
Profit / return earned on Islamic financial investments

placements
Return on deposits and other dues expensed
Net spread earned
Provision / (reversal of provision) against nonperforming
Islamic financial net
Provision for diminution in the value of investments
Bad debt written off directly
Net spread after provision
Other income
Fee. Commission and brokerage income
Divided income
Income from dealing in foreign currencies
(Loss) gain on sale of securities net
Unrealized gain / (loss) on revaluation of investments
Classified as held for trading
Other income
Total other income
6,999,178
5,001,222
1,697,956
(229,204)
2,018
10
(227,176)
1,925,132
231,082
905
229,992
17,674
2,405
482,058
2,407,190
Other expense
Administrative expense
Other provision / write offs
Other charges
Total charges
Total other expenses
1,910,731
15,621
136
480,702
480,702
-
Extra ordinary / unusual items

(Loss) / PROFIT BEFOR TAXATION
Taxation
-Current
- Prior years
-Deferred
(LOSS) / PROFIT AFTER TAXATION

(Loss) / earnings per share Basic and diluted (Rupees)
480,702
(72,228)
1,896
(70,332)
410,370
0,46

PROFIT AND LOSS ACCOUNT
2014
2015
.. (Rupees 000)
Profit / return earned on Islamic financial related

assets
Investments and placements
Return on deposits and other dues expensed
Net spread earned
Provision against nonperforming Islamic financing

and related assets net
Provision for diminution in the value of investments
Bad debt written off directly
Net spread after provision
Other income
Fee. Commission and brokerage income
Divided income
Income from dealing in foreign currencies
Gain / (Loss) on sale of securities net
Unrealized gain / (loss) on revaluation of investments
Classified as held for trading
Other income
Total other income
Other expense
Other provision / write offs

Other charges
Total other expenses
Extra ordinary / unusual items

LOSS BEFOR TAXATION
-Current
- Prior years
6,271,141
4,725,249
1,545,891
67,143
749,888
103,990
-
52,603
-
171,133
1,620,00
5
280,884
218,867
64,903
28,876
593,530
2,247,13
7
802,491
Administrative expense
Taxation
6,131,23
2
4,340,09
4
1,791,13
8
2,118,61
3
109,828
18,696
2,247,13
7
743,400
243,006
154,520
(5,406)
14,031
406,151
2,105,964
1,994,544
111,360
60
2,105,964
(33,602)
(33,602)
(956,413)
(956,413)
(67,248)
-
(33,388)
-
-Deferred
(LOSS) / AFTER TAXATION
Basis / diluted loss per share (Rupees)
59,619
(7,629
344,861
311,473
(41,231)
(0,05)
(644,940)
(0,72)

CASH FLOW STATEMENT
2014
2015
(Rupees 000)
CASH FLOW FROM OPERATING ACTIVITIES
Loss before taxation
Adjustments for non-cash and other items:
Depreciation
Depreciation on Ijarah assets held under IFAS 2
Amosation
Leasehold renovation written-off
Provision against no-performing Islamic financing
and rotated assets -net
Provision for diminution in the value of investment
(Reversal of position) / provision against other
assets
Gain on sale of operating fixed assets
Increase / decrease in operating assets

Due from financial institution
Islamic financing and related assets-net
Others assets
Increase / decrease in operating liabilities

Bills payable
Due to financial institution
33602
956413
111907
865104
89297
91101
104529
894678
85316
-
67143
749888
103990
52603
25113
48441
9449
121198
0
117837
8
8524
970800
970800
110000
110000
917044
1271839
3
414105
146508
848454
2225331
8
21042
295621
210207
255839
123684 1719629
Other liabilities
Income tax paid
Net cash inflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES

Sub-ordinate loans
Payment of lease obligation
Net cash inflow / (outflow) from financing activities
Net increase / (decrease) in cash and cash

equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalent at the end of the year
42
347935
439043
129055
1831825
42
61680
78024
553769
799270
2
115857
1
115857
1
113589
26
109338
58
222978
4
5123
5123
588809
1152266
7
1093385
8

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
2014
2015
..(Rupees 000)
ASSETS
Cash and balances with treasury banks
Balance with other banks
Due from financial institution
Investments
Islamic financing and related assets
Operating fixed assets
Deferred tax assets
Other assets
LIABILITIES
Bill payable
Due to financial institutions
Sub-ordinated loans
Liabilities against assets subject to finance lease
Deferred tax liabilities
Others assets
NET ASSETS
REPRESENTED BY
Share capital
Discount on issuance of shares
Reserves
Accumulated loss
Surplus / (Debit) on revaluation of assets net of tax
CONTINGENCIES AND COMMITMENTS
5727405
16565377
22161963
37020644
2725753
1431064
2127196
87759404
4221381
6712477
1100000
27421461
28782448
2629176
1292139
1707476
73866558
725609
2201945
75647097
1158571
2177989
81911211
746651
1991738
63278655
1830054
67847088
5848193
6019460
8935200
767290
82074
2419224
5830760
17433
5848193
8935200
767290
82074
2368938
5881046
138414
6019460
RATIO ANALYSIS
Earning Assets To Total Assets:
It shows how well bank management puts bank assets to work. HighPerformance banks have a high ratio.
Formula Applicable:
Average Earning Assets
Average Total Assets
2014 =
90.73%
2015 =
90.37%
Loan Loss Coverage Ratio:

It determines the asset quality and the level of protection of loans.
Formula Applicable:
Pretax Income + Provision for loan losses
Net Charges offs
2014 =
8.58
times
2015 =
13.57 times
Equity Capital To Total Assets:

It Measures the extent of equity ownership in the bank. This ownership
provides the cushion against the risk of using debt and
Formula Applicable:
Average Equity
=
2014 =
6.15 %
2015 =
6.66 %
Deposit Time Capital:

It is a type of debt/ equity ratio, indicating a banks debt position. More
capital implies a greater margin of safety, while a larger deposit base gives a
perfect of higher return to stockholder.
Formula Applicable:
Average Deposit
=
2014 =
2015 =
Current Ratio:
Average Stockholder Equity
10.15 times
13
times
It shows the banks current position of current assets over current

liabilities.
Formula Applicable:
Current Assets
=
2014 =
Current Liabilities
4.39 %
2015 =
7.61 %
Networking Capital:
It represents the difference between current asset and current
liabilities.
Formula Applicable:
Current Assets
Current Liabilities
2014 =
9295469
2015 =
19365230
Debt Ratio:
It represents the banks total debts over the total assets.
Formula Applicable:
Total Debt
Total Assets
2014 =
91.8 %
2015 =
93.34 %
Debt To Equity Ratio:

It shows the banks total liabilities over the banks equity.
2014 =
11.27 %
2015 =
14.01 %
Return On Total Equity:

It measures banks profitability by revealing how much profit a bank
invested.
Formula Applicable:
Net Income
Equity
2014 =
10.71 %
2015 =
0.71 %
Return On Total Assets:

It Shows the Banks net income it generates over the average total
assets. .
Formula Applicable:
Net Income
=
2014 =
2015 =
0.87 %
0.046 %
INTERPRETATION
1) In 2012 the earning assets to total assets ratio is 90.73% and in 2013 the
ratio decrease to 90.37. This is the indication that the earning assets are
decreased.
2) In 2012 the loan loss coverage ratio is 8.58 times and in 2013 its increase
up to 13.57 which is unfavorable for the bank.
3) In 2012 the equity capital to total assets is 8.15% which decrease up to
6.66% in 2013. It means equity decrease in 2013.
4) In 2012 the deposit time capital ratio is 10.51 and in 2013 are 13. It
indicates that the banks debt position in 2013 increases.
5) In 2012 the current ratio is 4.39% and 2013 7.61%. The current position is
better than the pervious.
6) The networking capital is more than the previous year.
7) There is increase in total debt of the bank 2013.
8) In 2012 debt to equity ratio is 11.27% which increase in 2013 up to
14.01% that mean there is increase in total liabilities which is not for the
bank.
9) Return on total equity 2012 is 10.71% which decrease in 2013 up to 71%.
The net income of bank decrease.
10) In the net income of bank decrease in 2013.
SWOT ANALYSIS
SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT is
useful tool for providing a framework for analysis of an organization. It is
widespread approach to make assessments in terms of internal and external
environment of the organization and to formulate strategies by analyzing its
internal strengths and weaknesses, external opportunities and threats.
SWOT analysis for Al Baraka Bank is as follow:
STRENGTHS
Commitment To Shariah
Striving to develop and an integrated Financial System. Compliance with the
rules and principles of Islamic Shariah is the core of the banking and financial
activities of the Bank. To this end Albaraka has successfully sought the advice
and expertise of scholars acclaimed for their knowledge and piety from all
over the Islamic world to guide its path and monitor its performance. The
Banks activities and operations are regularly scrutinized by its Shariah
Advisory Board.
Experienced and Qualified Staff
During the research it has been observed that the staff/personnel of the
organization is qualified and experienced. Many of the bank officials have got
advance knowledge and experience in the fields of management, banking law
and practice.
Good PR with Customers
The relationship of the manager and the other staff of the organization is
really good with the customers, which results in good will and loyalty of the
customers towards the organization.
Good Managerial Skills
The managers are fully aware of the recent managerial concepts and are able
to deal with any type of scenario.
Job Satisfaction at All Levels

Job satisfaction is one of the important factors for the employees to be
motivated. The people in the organization under consideration were found
highly satisfied with there jobs.
Quarterly Performance Appraisal
Performance appraisal is the way by which one can evaluate the employee
performance; it results in the enhancement of the organizations overall
performance. The performance appraisal is done on quarterly basis in this
organization, which results in better performance.
Friendly environment
The environment of the organization is very friendly. People over here are
very cooperative, not only with the customers but among themselves as well.
Competent senior management
The senior management in the organization is very much competent and
experienced; they successfully handle different internal and external affairs.
WEAKNESSES
No HR department level at zonal and branch level
Human resource department is one of the foremost requirements of any
organization of this age. The organization under consideration, though
contain a HR division at headquarter but there are no sub divisions at the
provincial or branch level. So when different problems related to HR are
raised, they are left unaddressed.
Centralized decision making
The decision making in the organization is completely centralized which
results in the loss of confidence of the employees over the management,
employees may not want to follow the dictates, rules and regulations.
Lack of frequent training

Though there is training academy at head office, but the training programs
are usually confined to the managerial staff, there is a need of training at all
the levels.
Lengthy recruitment process
The recruitment process is quite lengthy which can discourage the new
comers. So, there is a need to shorten the whole process.
Less internal recruitment for new posts
It has been found that in the organization under consideration, if new
vacancies are allocated there is a trend of external recruitment, which results
in the dissatisfaction of the current employees.
Lack of Marketing Effort
The bank does not promote its corporate image, services, etc on a
competitive way. Hence lacks far behind in marketing effort. A need for
aggressive marketing is there in the era marketing in now becoming a part of
every organization.
OPPORTUNITIES
More qualified people in the market
Due to the increase of interest of people in business field, many business
institutions have been established, which produces a good lot of qualified and
competent business professionals. So, the organization under consideration
can hire more qualified people from market.
Effective utilization of internal human resources
People working in the organization get use to the norms and values of the
organization, so these expirees can be utilized with in the organization
whenever required.
Training can enhance the employees skills.
Training and development is one of the important functions of human
resource management. If the staff of the organization are properly trained
and developed they will add to the value of the organization.
THREATS
Increase in Competition
The increasing competition in local as well as national and multinational level
also lower down the profitability of the bank and compelling the bank to use a
large amount of funds to meet out competition.
Good job opportunities outside.
The other organizations of similar nature are offering more salaries and
benefit packages to their employees. So, there is a threat to the organization
that their current employees may leave it.
Uncertainty about future change
An uncertainty about the future changes has been noticed among the
employees of the organization, it results in dissatisfaction and demotivation
of the employees, which is a serious threat to the organization.
Other organizations are using better HR techniques.
Other organizations of similar nature are using better and recent HR
techniques, so they have got an edge to facilitate their employees whenever
they need. It can be a serious threat to this organization as there employees
would not be satisfied of their own organization which will effect their
performance.
SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT is
useful tool for providing a framework for analysis of an organization. It is
widespread approach to make assessments in terms of internal and external
environment of the organization and to formulate strategies by analyzing its

internal strengths and weaknesses, external opportunities and threats.
PEST Analyses
Political Environment
Political environment badly effects the organization. It has directly concern with the legal
issues. The Govt. is changing rules and regulations law and order is changing everyday.
In Pakistan law and order situation is very bad which is effecting all the things in
Pakistan and due to this problem it become difficult for the organization to run
successfully
Unstable Government
Now our government is in the hands of two political parties and both parties have
different objectives,
Every person have their own ideas and style of working and for this reason nobody is
working properly , the result of this the economy of that country is gone downward and
banks suffers from this.
Adverse law and order situation
The situation of law and order is going to adverse. The policies are not very handy and
beneficial for the country. The Govt. passes such rules which are not in the favor of
bank. The Govt. of Pakistan passed a rule that if anyone withdraws more than
Rs.25000 then it will be charged 0.30% on withdrawal.
Economical Environment
Pakistan's economy is going weaker and weaker. 9/11 has a great influence on the
economic crisis of all over the world. With economic factors the bank influenced very
much that are as under:
o
Low interest rate
Inflation
Low GDP growth
Budget deficit
Increase in Govt. duties
Fluctuation in exchange rates
Social Environment
Social environment includes family, friends, a person role and status. An individual
life directly by society and the person acts according to his or her society. Cultural
environment includes norms, values, religion and perception.
o
If we see the religion point of view then interest is not allowed that's why most of
the people hesitate to invest their savings in banks.
But ABBL bank is free from all type of interest people like to invest money in Islamic
bank
Technological Environment
Today is the period of technology. In the every aspect of life technology plays an
important role. They are investing heavily in changing their soft ware and they are also
upgraded their hard ware
SUGGESTIONS AND RECOMMEATIONS

The political influence should be minimized on all type of the operations of
Al-Baraka bank.
The customer satisfaction should be guaranteed through rapid delivery of
financial products and services.
Implementation on the rules, regulation and policies should be done at all
cost.
Advances of the non-productive investment should be stopped.
The influence of the employees union should be minimized.
The bank should develop a comprehensive recruitment policy in order
recruit the competent people.
The professional people should be recruited at least executive level.
The employees should be promoted according to their turn.
In order to improve the productivity the pays of employees should be
compatible to banking industry.
For checking the implementation of policies task force should be formed.
All the branches of Al-Baraka bank should be computerized.
The bank should spend more on the promotional activities.
GLOSSARY
Al-Ajr
Refers to commission, fees or wages charged for services.
Al-fard al-kifai
Socially obligatory duties. Literally, a collective duty of Muslims, the discharge
of which by some of them absolves the rest of its performance, such as funeral
prayers. Technically it covers such functions which the community fails to or
cannot perform and hence are taken over by the state, such as the provision of
utilities, building of roads, bridges and canals etc.
Al-wadia
Resale of goods with a discount on the original stated cost.
Al-wakala
Absolute power of attorney
Al-Rahn Al
An arrangement whereby a valuable asset is places as a collateral for a debt.
The collateral may be disposed off in the event of a default.
Al-wadiah
Safe keeping
Awkaf/Awqaf
A religious foundation set up for the benefit of the poor
Baimuajjal
Deferred-payment sale
Bai al-Dayn
Debt financing: the provision of financial resources required for production,
commerce and services by way of sale/purchase of trade documents and
papers. Bai al-Dayn is a short-term facility with a maturity of not more than a
year. Only documents evidencing debts arising from bona fide commercial
transactions can be traded.
Bai al Salam
Contract of sale of goods where the price is paid in advance and the goods
are delivered in the future.
Baisalam
Pre paid purchase
Bai Bithaman Ajil
This contract refers to the sale of goods on a deferred payment basis.
Equipment or goods requested by the client are bought by the bank which
subsequently sells the goods to the client an agreed price which includes the
banks mark-up (profit). The client may be allowed to settle payment by
instalments within a pre-agreed period, or in a lump sum. Similar to a
Murabaha contract, but with payment on a deferred basis.
Baitul mal
Treasury
Dirham
Currency
Fatwah
A religious decree.
Fiqh
Islamic jurisprudence. The science of the Shariah. It is an important source of
Islamic economics.
Hadith
Prophets commentary on Quran
Hajj
Hajj means pilgrimage to Mecca and other holy places. Hajj, the fifth pillar of
Islam, is a duty on every Muslim who is financially and physically able to carry
it out, at least once in his lifetime. There is a specific period for Hajj, namely
one week from the 8th day of the Islamic month of Dhul Hijjah to the 13th
day of that month in the Islamic lunar calendar.
Haram
Unlawful
Ijara (Leasing)
A contract under which a bank purchases and leases out equipment required
by its client for a rental fee. The duration of the lease and rental fees are
agreed in advance. Ownership of the equipment remains in the hands of the
bank.
Ijara wa Iqtina (Lease to Purchase)
The same as ijara except the business owner is committed to buying the
equipment at the end of the lease period. Fees previously paid constitute part
of the purchase price. This type of lease to purchase agreement is commonly
used for home financing.
Ijara-Wa-Iktina (Lease Purchase)
Like Ijara, except that the client is committed to purchase the equipment at
the end of the rental period. It is pre-agreed that at the end of the lease
period the client will purchase the equipment at an agreed price from the
bank, with rental fees paid to date, forming part of the price.
Ijtehad
Lit: effort, exertion, industry, diligence. Technically, endeavour of a jurist to
derive or formulate a rule of law on the basis of evidence found in the
sources.
Iman
Faith
Istisna
A contract of acquisition of goods by specification or order, where the price is
paid in advance, but the goods are manufactured and delivered at a later
date.
Mudaraba (Trust Financing)
We may act as managing trustee (Modareb) while you are the beneficial
owner (Rab El-Maal). It is our responsibility to invest the funds that you
provide. Alternatively, our roles may be reversed, when you, as managing
trustee, are responsible for investing our funds. In each case, we shall agree
on our relative share of any profits.
Mudarib
In a mudaraba contract, the person or party who acts as entrepreneur.
Muamalah (t)
Lit: economic transaction. Technically, lease of land or of fruit trees for
money, or for a share of the crop.
Murabaha (Cost-Plus Financing)
A contract of sale between the bank and its client for the sale of goods at a
price plus an agreed profit margin for the bank. The contract involves the
purchase of goods by the bank which then sells them to the client at an
agreed mark-up. Repayment is usually in installments.
Morabaha (Cost-Plus Financing)
Used if you wish to purchase equipment or goods. We will purchase these
items, and then sell them to you at cost plus a reasonable profit.
Musharaka (Partnership Financing)
This is a classical partnership agreement. All parties involved contribute to
towards the financing of a venture. The parties share profits on a pre-agreed
ratio while losses are shared according to each parties equity participation.
Here again the reason is because in Islam, one cannot loose what they did
not contribute. Management of the venture is carried out by all, some, or just
one party member.
Musharaka (Joint Venture)
We add our funds to your funds, and participate in the equity of the project.
We share profits and losses in direct proportion to our contributions.
Musaqah
A contract in which the owner of the garden shares its produce with another
person in return for his services in irrigating the garden.
Muzaraa
It is a contract in which one person agrees to till the land of the other person
in return for a part of the produce of the land.
Nisab
Exemption limit for the payment of zakah. It is different for different types of
wealth.
Qard al Hasana
A virtuous loan. A loan with the stipulation to return the principal sum in the
future without any increase.
Qard Hassan
An interest-free loan given for either welfare purposes or for fulfilling shortterm funding requirements. The borrower is only obligated to repay back the
principal amount of the loan.
Qimer
Lit: gambling. Technically, an agreement in which possession of a property is
contingent upon the occurrence of an uncertain event. By implication it
applies to those agreements in which there is a definite loss for one party and
definite gain for the other without specifying which party will gain and which
party will lose.
Qirad
Mudaraba
Rab-al-maal
In a mudaraba contract the person who invests the capital.
Rabbul-mal
Owner of Capital
Riba
Lit: an excess or increase.
Technically, an increase, which in a loan
transaction or in exchange of a commodity, accrues to the owner (lender)

without giving an equivalent counter value or recompense in return to the
other party. It covers interest both on commercial and consumer loans.
Riba al-buyu
A sale transaction in which a commodity is exchanged for the same
commodity but unequal in amount and the delivery of at least one
commodity is postponed. To avoid riba-al-buyu, the exchange of commodities
from both sides should be equal and instant. Riba-al-buyu was prohibited by
the prophet Mohammad to forestall riba (interest) from creeping into the
economy from the back door.
Riba al-fadl
Usury of trade. It is an alternative term for riba al-buyu.
Riba al-diyun
Usury of debt.
Riba al-nasia
Increment on the principal of a loan payable by the borrower. It refers to the
practice of lending money for any length of time on the understanding that
the borrower would return to the lender at the end of this period the amount
originally lent together with an increment in consideration of the lender
having granted him time to pay. The increment was known as riba al-nasia.
It was in vogue in Arabia in the days of the Prophet Muhammad.
Ruqa
Banking instrument of the early Muslim period. It was a payment order to
draw money from the bank.
Sadaqah
Charitable giving.
Shirkah
A contract between two or more persons who launch a business or financial
enterprise to make profit.
Takaful
This is a form of Islamic insurance based on the Quranic principle
of Taawon or mutual assistance. It provides mutual protection of assets and
property and offers joint risk sharing in the event of a loss by one of its
members. Takaful is similar to mutual insurance in that members are the
insurers as well as the insured. Conventional insurance is prohibited in Islam
because
its
dealings
contain
several haram elements
including gharar and riba, as mentioned above.

Waqf
Lit: detention. Technically appropriation or tying-up of a property in perpetuity so
that no propriety rights can be exercised over the usufruct. The Waqf property
can neither be sold nor inherited or donated to anyone. Awqaf consists of
religious foundations set up for the benefit of the poor.
Zakah/Zakat
A tax which is prescribed by Islam on all persons having wealth above an
exemption limit at a rate fixed by the Shariah. According to the Islamic
belief Zakah purifies wealth and souls. The objective is to take away a part of
the wealth of the well-to-do and to distribute it among the poor and the needy. It
is levied on cash, cattle, agricultural produce, minerals, capital invested in
industry, and business etc. The distribution of Zakah fund has been laid down in
the Quran (9:60) and is for the poor, the needy, Zakah collectors, new converts
to Islam, travellers in difficulty, captives and debtors etc. It is payable if the
owner is a Muslim and sane. Zakah is the third pillar of Islam. It is an obligatory
contribution which every well-off Muslim is required to pay to the Islamic state, in
the absence of which individuals are required to distribute the Zakahamong the
poor and the needy as prescribed by the Shariah.
Zakat al-Fitr
Which is payable by every Muslim able to pay, at the end of Ramadan (the month
of fasting). This is also called Zakat al-Nafs (Poll Tax).

Zakat al Maal
Is an annual levy on the wealth of a Muslim (above a certain level). The rate paid,
differs according to the type of property owned. This tax is earmarked for
amongst others for the poor and needy.

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INTERNSHIP REPORT

Administration for their valuable guidance, constructive criticism and

appreciation go to the rest of al-Baraka

staff that helped me to write

AL-BARAKA BANKING GROUP (AGP)

VISION, MISSION & CORE VALUE

BRANCH OF Al-BARAKA BANK AT SAHIWAL

SUGGESTIONS AND RECOMMEATIONS

Issuance of Bank Note

Payment of Interest on Deposits

Bank in Egypt in Sudan in 1977.

Subsequently, Bahrain Islamic Bank and

Jordan Islamic Bank came into being in 1978.

Islamic Banking in Pakistan

Kinds of Commercial Banks

AL-BARAKA BANKING GROUP (AGP)

Al Baraka House, 162 Bangalore Town, Main

Ernst &Young Ford, Chartered Accountant.

Name of Legal Advisor: Muhammad Siddique Memon

Justice (R) Khalid-ur-Rehman Khan

Chairman shariah board

Shaikh Esam M. Ishaq Abdul Rehman

Member shariah board

Mufti Abdullah Ul Haq Siddique

Resident shariah board member

VISION, MISSION & CORE VALUES

system which rewards effort and contributes to the development of the

Driven We have the energy and perseverance it will take to make an

Neighborly We value and respect the communities we serve. Our

Marketing your business is about how you position it to satisfy your

Product The right product to satisfy the needs of your target

weaknesses, and that it will provide an acceptable risk/return tradeoff. For

Cost-plus Adds a standard percentage of profit above the cost of producing

of this pricing method.

including non-price factors such as quality, healthfulness, and prestige.

little or no control over the market price.

consumers. Later, the price is decreased as the market becomes saturated.

example of a discounted price.

attract customers to the store to buy other products.

you receive. You will also have to decide how to determine:

so you will be supplying directly to the customer. Businesses that create or

Reseller Sales (Sales through an Intermediary)

Wholesalers want a steady year-round supply of product to distribute. If you

Radio Radio advertisements are relatively inexpensive ways to

is generally the best time to run your radio ad.

but may be more expensive than other options.

or old customers on local, regional, or national levels.

promotion of your products. Direct e-mail contact is possible if you

have collected detailed customer information.

effectiveness of your products.

BRANCH OF AL BARAKA BANK IN SAHIWAL

The branch of Al Baraka Bank (Pakistan) Limited is situated at 183-B/7,

Mr. Masood Nazir

Miss Mehreen Fatima

Major Operations at Al-Baraka Bank:

A Pak Rupee current account with no minimum balance requirements

No profit / return will be paid to the depositor on the balance

Can be opened with as low as Rs. 100/=

No minimum balance requirement and no penalty for low balances

Unlimited and free access to cash withdrawals through ABPLs ATM

Transactions on non-ABPL ATMs will be charged as per the Schedule of

Statement of account will be issued once a year

Other services will be provided as per prevailing Schedule of Charges