Al-wadiah:

Al-Wadiah is a ‘safe keeping’ arrangement approved in shariah. Islamic Banks use the Al-Wadiah principles to receive deposits in Current Accounts. Islamic Banks obtain permission from the Al-Wadiah depositors to utilize the Funds at its own responsibility and the depositors would not share any profit or loss earned/incurred out of using of this funds by the bank. The Banks have to pay back the Al-Wadiah deposits received on demand of the depositors.

Mudaraba:

Profit distributions are executed as per approved weightage table.

Salient Features:

• This is a mode of investment is usually used for working capital finance requirement of the client.
• The seller have to clearly specify the name, specification, brand, quality, quantity, size etc. of the goods without any ambiguity.
• In the agreement the unit price and total price of the goods will be fixed and mentioned
• Exact time and place of delivery will be specified.

Salient Features:

Salient Features:

• This is a mode of investment is usually used for working capital finance requirement of the client.
• The Bank will purchase goods according to the client choice for onward sale to the client.
• Payment of the sale price is deferred for a fixed period.
• Bank will transfer the ownership and possession of the goods to client before receipt of sale price.
• Bank will bear the risk of goods after purchase until those are actually delivered to the client.

Salient Features:

Salient Features:

• This is a mode of investment is usually used for working capital finance requirement of the client.
• The Bank will purchase goods according to the client choice for onward sale to the client.
• Payment of the sale price is deferred for a fixed period.
• Bank will transfer the ownership and possession of the goods to client before receipt of sale price.
• Bank will bear the risk of goods after purchase until those are actually delivered to the client.

Import business

Import business is predominantly conducted through Letter of Credit. A letter of Credit (LC) is a written undertaking given by the Bank to a seller / exporter to the effect that the Bank will pay the seller a certain amount stipulated in the LC, provided that the seller complies with the terms and conditions of the LC. The Bank issues the LC mainly under the following contractual concepts:

• Wakala/ Agency contract
• Murabaha / Bai-Muajjal
• Musharaka

Export business

Hire Purchase under Shirkatul Melk is a synthesis of three contracts:

1. Shirkat
2. Ijarah and
3. Sale

SHIRKAT

Shirkat means partnership. Shirkatul Melk means share in ownership. When two or more persons supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement and bear the loss in proportion to their respective equity, the contract is called Shirkatul Melk contract

IJARAH