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Showing posts with label Islami Banking. Show all posts
Showing posts with label Islami Banking. Show all posts

Saturday, May 19, 2018

Agrani Bank Investment Products of Islami Banking
May 19, 2018

Agrani Bank Investment Products of Islami Banking

Investment Products
Investment Activities:
Islamic Banking Windows invest the money of the depositors in different shariah based areas in following modes:-
1. Buying-Selling:
A. Bai-Murabaha:A contract between a Buyer and Seller under which the seller sells certain specific goods permissible under Islamic shariah and the Law of land to the Buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump sum or by instalments. Profit disclosure is mandatory.
B. Bai-Muazzal:Shariah based buying-selling system where deferred payment is agreed between buyer and seller is typically known as Bai-Muazzal.
C. Bai-Salam:Advance purchase system is used to buy/sell of unfinished goods. Delivery time is fixed and payment is made in advance.
D. Bai-Istisna: This is also a system of advance purchase mainly for manufacturing item where all the advance can be made in installment or in single disbursement.

2. Share System:

A. Mudaraba:: Mudaraba is a sharing system where one party deploys capital and the other uses labor. Profit is distributed according to agreed ratio and loss is borne by capital owner.
B. Musharaka: Musharaka is a contract of partnership between two or more parties in which all the partners contribute capital, participate in the management, share the profit in proportion to their capital or as per pre-agreed ratio and bear the loss, if any, in proportion to their capital/equity ratio.

3. Hire-Purchase System (Hire Purchase Under sherkatul Melk):

Hire Purchase Under Sherkatul Melk(HPSM)is a system where bank invests in Capital Machineries, Consumer Items, House building etc. as equity partner. Then the item is used by the client and rent is collected as equity share.
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Agrani Bank Deposit Products of Islami Banking
May 19, 2018

Agrani Bank Deposit Products of Islami Banking

Deposit Products
Islamic Banking Branches and Windows collect deposits on two basic principles:

1. Al-Wadiah Account.
2. Mudaraba Account.

A. Al-Wadiah Account:
‘Al-Wadiah’ is the contract of giving total security of money of the depositors. In this regard, depositors do not participate or take any risk of business with the bank. Depositors hold the right to withdraw his or her money at any banking time. Depositors do not get profit from bank. Rather bank can deduct service charge from the account for maintaining and securing the deposit.
B. Mudaraba Account:
Mudaraba is a share based business system. Two parties involve in the contract where one party invests all the capital (owner of capital or Shahib-Al-Mal) and other uses his or her knowledge, experience, ability, skill and labor to run the business (Manager of Capital or Mudarib).
Different Types of Deposit Account
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Sl.DepositProvisional Rate of Profit
(01-04-2018)
1.Al-Wadeah Current Account–
2.Mudaraba Savings Account3.50%
3.Mudaraba Special Notice Deposit(MSND)3.50%
4. Mudaraba Term Deposit Account(MTDR)
(A) 1 Month.3.50%
(B) 3 Months.5.00%
(C) 6 Months.5.50%
6 Months(above Tk. 5.00 crore)6.00%
(D) 1 Year and above.6.00%
1 Year and above(above Tk 5.00 crore)6.50%
5.Mudaraba Special Savings Scheme
(a) 5 Years7.00%
(b) 10 Years8.00%
6.Mudaraba Hajj Deposit Scheme
(a) 1 Year to 5 years7.50%
(b) 6 Years to 10 years8.50%
7.Mudaraba Mohor Savings Deposit Scheme
(a) 5 Years6.50%
(b) 10 Years7.50%
8.Mudaraba Cash Waqf Deposit Scheme8.50%
9.Mudaraba ‘Probashi kallyan’ Savings Account4.50%
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Islamic Banking of Agrani Bank
May 19, 2018

Islamic Banking of Agrani Bank

Islamic Banking
Islamic banking, in contrast to conventional banking, involves the provision of financial products and services by institutions offering Islamic financial services for Shariah approved underlying transactions and economic activities, based on contracts that comply with Islamic Shariah laws.

To provide shariah based banking services to the valued clients, Agrani Bank Limited has launched islami banking facility. Agrani Bank Limited is the first state-owned Commercial Bank in Bangladesh to introduce Shariah Based Islamic Banking System. In Agrani Bank Limited, Islamic Banking system is operated under ‘Islamic Banking Unit’ since February 28, 2010 through 5 Islamic Banking Windows. Overall business performance of Islami Banking Unit is increasing in all areas.

A highly qualified and skilled Shariah Supervisory Committee is formed with renowned Professors of Dhaka University and scholars of Islami Shahiah and Banking. This committee is chaired by Prof. Moulana Mohammad Salahuddin, Khatib of the National Mosque Baitul Mukarram.


Islamic Banking Activities:
*Collection of Deposit.
*Investment.
*Fund Transfer.
*Foreign Remittance.
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Islami Banking by AB Bank
May 19, 2018

Islami Banking by AB Bank

Name

Islami Banking

Category
Islami Banking
Description
To provide the Islamic banking services in accordance with the principles of Islamic Shariah, AB Bank has established Islamic Banking Wing and started its functioning by opening full-fledged Islamic banking branch on 23.12.2004. The branch is known as AB Bank Islami Banking Branch, Kakrail, and is situated at 82, Kakrail, Ramna, Dhaka. Prominent Islami Banker Mr. M. Azizul Huq has joined the Bank as its Islamic Banking Consultant. A dedicated team of experienced Islamic bankers is working under his active guidance both at head office and branch level. A competent Shariah Council consisting of Islamic scholars, Ulema, Fukaha and Islamic bankers headed by Mr. Shah Abdul Hannan, a prominent Islamic scholar and former Secretary, Government of Bangladesh has also been formed to guide the Islamic banking affairs. Board of directors as well as management of the bank are very much interested to promote Islamic banking system in the bank aiming at opening more Islamic branches in the near future. AB Bank has already obtained membership of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh.

The goals and objectives of Islamic banking Wing are as under:

* To facilitate the Islamic banking system in the country
* To create new entrepreneurs and to arrange required finance for them
* To play effective role for socio economic development of the country
* To give assistance in launching welfare oriented economic system under Islamic values

Under this wing AB Bank extends the following Islamic banking services:

* Deposit services
* Investment services

Under Deposit services the following services are being rendered:

* Mudaraba Savings Account
* Mudaraba Short Noticed Account
* Mudaraba Term Deposit Account (with different terms)
* Mudaraba Monthly Profit Account
* Al-Wadiah Current Deposit Account
* Mudaraba Deposit Pension Scheme

Besides Mudaraba Hajj Deposit Scheme and some other schemes are under process.

Investment Services
AB Bank Islmic Banking Wing provides investment facilities for project finance, working capital finance, SME finance, consumer / retail baking finance etc. under following modes:

* Hire-Purchase under Shirkatul Melk (HPSM): Under this mode the Bank and the client procure asset such as machinery, land , car etc. on equity participation basis. The Bank rents out its portion of assets to the client for a certain period. The client pays the rental with a part of principal amount on monthly / quarterly basis. The client gets its proportionate ownership with the payment of monthly / quarterly installments. On maturity, total ownership of the assets automatically goes to the client as and when final payment of the account is made.
* Ijara or Leasing: It is more or less like the HPSM. In this case equity participation may or may not exist. Ownership of the asset is not automatically transferred to the client with the payments of installments. On maturity, the bank transfers the ownership to the client on payment of certain transfer fees.
* Bai-Muajjal / Bai-Murabaha: These modes are applicable for working capital finance. Under these schemes bank purchases goods / raw materials as per requirement of the client. In case of Bai-Muajjal bank receives the sales proceed on deferred payment basis. On the other hand in case of Bai-Murabaha Bank receives the sale price at the time of delivery of the goods / raw materials. Before handing over the goods / raw materials the bank generally keeps the same in its custody under pledge.
* Musharaka : Under this mode the Bank and clients jointly participate in a project, in a scheme or project. Profit is shared between the Bank & the concerned client as per pre-agreed ratio. On the other hand loss is shared according to capital ratio.
* Mudaraba: Under this mode bank finances the scheme as a Shaheb-Al-Maal (owner of the capital). Profit is shared between the two sides as per pre-agreed ratio.

Sector of Investment:
Islamic Banking Wing of the bank finances in all sectors i.e., Industry, business, Agriculture, Real Estate etc. if purpose of the investment is permissible under Islamic Shariah.

Limit of Investment:
Investment is offered to the extent of single borrower exposure limit as fixed by the Bangladesh Bank from time to time.

Foreign Trade:
Islamic Banking Wing provides the following services at its foreign trade desks:

* Opening of LCs
* Post -Import Finance
* Export bill purchase and negotiation
* Pre-shipment financing etc.

AB Bank Islamic Banking Wing has been continuously trying to expand it’s service horizon keeping the necessity of valued clients in view and upholding the principle of Islamic Shariah.

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