ISLAMIC Banking Pakistan

SUBMITTED TO : TALHA SALEEM KAPADIA

ESSENTIALS OF ISLAMIC FINANCE

PRESENTED BY:

• SHAKIR ULLAH (10159)• FAIZA ZAFAR (2184)• SYEDA SANA ZAIDI (10275)• SANOBER DILSHAD (2650)• ADINA KHAN (3663)

HABIB BANK LIMITED

Islamic Banking

INTRODUCTION TO HBL

• HBL was established in Bombay in 1941• Established operations as the commercial

bank in, Pakistan in 1947• First international branch was established in

Colombo, Sri Lanka in 1951 • It was the 1st Muslim bank of the sub

continent • It was nationalized in 1974• It was privatized again in 2004

INTRODUCTION TO HBL (cont’d)

• It is one of the largest banks of Pakistan

• 1466 branches inside country • 112 overseas offices in 25 countries• AKFED acquired 51% of shares of

HBL, against an investment of PKR 22.409 billion.

• HBL awarded best bank of the year 2009.

MISSION

• To create value for our customers, investors, and staff through:

• integrity, good governance, • effective risk management -

protecting asset quality,• human resource management and

maintaining high ethical and professional standards.

VISION

• To be a credible Islamic Financial Institution

• in the market offering diversified Islamic

• Financial Products

CORPORATE VALUES

• Excellence• Meritocracy• Integrity• Progressiveness• Customer Focus.

Level of Management & Board of Directors

Level of Management & Board of Directors

Shariah Compliance

• HBL Islamic Banking offers a host of Shariah Compliant services that cater to our diverse clientele. • We have a Shariah Scholar, as member of our Shariah Supervisory Committee to ensure a sound Shariah Compliance mechanism, giving prompt responses to customer's needs and access to Shariah knowledge.

Financing Products

•Murabaha•Musharakah• Ijarah• Sukuk

Financing Products

Murabaha

• Local and Import facilities for purchase of raw materials, semi finished and finished goods, stores or spares

Musharaka

• Medium to long term facility for vehicles, plant and machinery on joint ownership basis

Ijarah (Leasing)

• Medium to long term facility for vehicles, plant and machinery leased out to the client on rental basis.

Sukuk

• HBL invest in high rated Ijarah Sukuk issued by public companies and Government of Pakistan and investment is subject to regulation as applicable to Mudarabas.

• Sukuk is widely known as an Islamic or Sharia’h compliant ‘Bond’ whilst in actual facts; these are asset-backed trust certificates. In its simplest form Sukuk is a certificate evidencing ownership of an asset or its usufruct.

Trade Services

• Letter of Credit Facility• Collection of Foreign Bills• Collection of Local Bills• Letter of Guarantees

Value Added Services

• ATM/Debit Card Facility• Foreign / Inland Remittances• Utility Bills Collection• E-banking / Internet Banking Services• 24/7 Phone Banking Services• Personalized customer friendly services

Asset Products

• HBL Islamic Banking introduces its range of structured lending products, allowing you to choose the one that best serves your banking needs.

SALAM ISTISNA

Salam

• Salam is a contract through which advance payment is made for goods and delivery is made at a later date.

• Salam is ideally used for financing Working Capital for manufacturing and purchasing goods.

Istisna

• Istisna is a sale transaction where a commodity is transacted before it comes into existence. It is an order to a manufacturer to manufacture a specific commodity for the purchaser.

• This product is offered to Commercial / SMEs /Corporate customers engaged in manufacturing of local and/or for export of goods.

Islamic Export Refinance

• is the Shariah Compliant alternative for providing finance at concessionary profit rates to eligible exporters.

• State Bank of Pakistan (SBP) provide finance to the HBL-Islamic Banking on Musharakah (profit and loss sharing) basis.

FINANCIAL HIGHLIGHTS FOR THE LAST SIX YEARS AT A GLANCE