Beruflich Dokumente
Kultur Dokumente
MONEY BANKING
AND FINANCE
Submitted To:
Sir. Khuram Amin
Submitted By:
Yawar Abbas:
129
Usama Farooq:
136
Qaiser Khalil:
138
Hamza Naeem:
150
UNIVERSITY OF SARGODHA.
Page 1
BBA-4th-SS
UNIVERSITY OF SARGODHA.
Page 2
BBA-4th-SS
INTRODUCTION
UNIVERSITY OF SARGODHA.
Page 3
BBA-4th-SS
The authorized capital of ABG is US$1.5 billion, while the total equity
amounts to about US$ 1.59 billion. With assets of US$11.2 billion, the
Group has a wide geographical presence in the form of subsidiary
banking Units in 12 countries, which in turn provide their services
through more than 250 branches. These banking Units are Jordan
Islamic Bank/ Jordan,
History:
Al-Baraka Islamic Bank (AIB) has the honor of being the pioneer of Islamic
banking in Pakistan and has been operating in the country as branches of AlBaraka Islamic Bank Bahrain since 1991.
Over the years, the bank has successfully developed and maintained its
identity as one of the leading providers of a host of banking products and
services in strict compliance with Shariah principles. Currently operating
with 20 branches in 11 major cities of the country,
AIB offers a wide array of Islamic financing products such as Murabaha, Ijara,
Musharaka and Islamic Export Refinance,
UNIVERSITY OF SARGODHA.
Page 4
BBA-4th-SS
Mudarabah:
"Mudarabah" is a special kind of partnership where one partner gives money
to another for investing it in a commercial enterprise. The investment comes
from the first partner who is called "rabb-ul-mal", while the management and
work is an exclusive responsibility of the other, who is called "mudarib".
Investment
It is necessary for the validity of Mudarabah that the parties agree, right at
the beginning, on a definite proportion of the actual profit to which each one
of them is entitled. The Shariah has prescribed no particular proportion;
rather it has been left to their mutual consent. They can share the profit in
equal proportions and they can also allocate different proportions for Rab-ulMaal and Mudarib. However in extreme case where the parties have not
predetermined the ratio of profit, the profit will be calculated at 50:50.
UNIVERSITY OF SARGODHA.
Page 5
BBA-4th-SS
The Mudarib & Rab-ul-Maal cannot allocate a lump sum amount of profit for
any party nor can they determine the share of any party at a specific rate
tied up with the capital. For example, if the capital is Rs.100,000/-, they
cannot agree on a condition that Rs.10,000 out of the profit shall be the
share of the Mudarib nor can they say that 20% of the capital shall be given
to Rab-ul-Maal. However they can agree that 40% of the actual profit shall go
to the Mudarib and 60% to the Rab-ul-Maal or vice versa.
It is also allowed that different proportions are agreed in different situations.
For example, the Rab-ul-Maal can say to Mudarib "If you trade in wheat, you
will get 50% of the profit and if you trade in flour, you will have 33% of the
profit". Similarly, he can say "If you do the business in your town, you will be
entitled to 30% of the profit and if you do it in another town, your share will
be 50% of the profit".
Musharakah:
Musharakah plays a vital role in financing business operations based on
Islamic principles, which prohibit making a profit on interest from loans. For
example, suppose that an individual (A) wants to begin a business but has
limited funds. Individual (B) has excess funds and wishes to be the financier
in musharakah with A. The two people would come to an agreement to the
terms and begin a business in which both share a portion of the profits and
losses. This negates the need for A to receive a loan from B.
SECURITY IN MUSHARAKAH:
In case of Musharakah agreement taking place between bank and client, the
bank may ask the client to furnish a security to ensure that the capital is
invested as per agreed term and conditions. note that security cannot be
used to set off against any losses.
Murabaha:
UNIVERSITY OF SARGODHA.
Page 6
BBA-4th-SS
Murabaha LC:
The customer submits an application to the bank to open a letter of
credit for the purchase or import of goods, indicating that it wants to
buy the goods from the bank upon arrival on a Murabaha basis.
The bank will open a letter of credit accordingly, and the price will be
paid by the bank in its capacity as the buyer of the goods.
Upon the arrival of the goods, the bank sells them to the customer on a
Murabaha basis at an agreed price which includes the cost of goods, a
profit and service fees.
Istisna'a:
Istisna is an Islamic form of financing used to finance construction and
industrial projects, such as the construction of buildings and so on. The
unique feature of Istisna'a is that it allows the selling of an asset which
does not exist at time of the contract. The payment can be in
immediate cash or may be in the form of deferred payments.
IJARAH
"Ijarah" is a term of Islamic fiqh. Lexically, it means to give something on rent. In the Islamic
jurisprudence, the term 'Ijarah' is used for two different situations. In the first place, it means to
employ the services of a person on wages given to him as a consideration for his hired services.
The employer is called 'musta'jir' while the employee is called 'ajir.
WHAT WE OFFER:
UNIVERSITY OF SARGODHA.
Page 7
BBA-4th-SS
AIB offers financing based on trade i.e. sales and purchases. Money
is not lend based on an agreed return for money which is prohibited as
Islam encourages Trade and prohibits lending. AIB Hhases goods
required by the customer and sells the same at an agreed profit, on
the cost price under Murabahah transaction. The value based on price
is settled within an agreed time period, either in installments or
lumsum.
FINICIAL ANALAYSICS
UNIVERSITY OF SARGODHA.
Page 8
BBA-4th-SS
UNIVERSITY OF SARGODHA.
Page 9
BBA-4th-SS
PRODUCTS OF ABL
ACCOUNTS :
CURRENT ACCOUNT:
UNIVERSITY OF SARGODHA.
Page 10
BBA-4th-SS
balance
of
Rs. 0.1
bank offers PLS savings accounts facility to its customers with the
following features
Attractive return up to 5.00% per annum
No Service charges on active account
Complementary ATM cards
UNIVERSITY OF SARGODHA.
Page 11
BBA-4th-SS
SLABS
12
MONTH
MONTH
MONTHS
MONTHS
S
Rs0.5(M) to less than RS
6.50%
7.00%
7.50%
8.00%
6.75%
7.25%
7.75%
8.25%
7%
7.5%
8%
8.5%
7.5%
8.00%
8.5%
9%
8.0%
8.5%
9.00%
9.5%
5 (M)
Rs5(M) to less than Rs
10(M)
Rs10(M) to less than Rs
15(M)
Rs15(M) to less than
Rs20(M)
Rs 20(M)&above
Minimum Amount
Profit
Projected
rates
profit
Eligibility
Period
3 years
UNIVERSITY OF SARGODHA.
Page 12
BBA-4th-SS
LENDING PRODUCTS
SEASONAL FINANCE:
seasonal finance facility is allowed against pledge of produce of cash crops
harvested in that particular crop season. The delivery of pledge stocks/goods is
made against appropriate cash payment
AGRICULTURAL FINANCE:
bank under agricultural financing scheme envisaged by the state bank of Pakistan
extends short, medium and long term, farm and non-farm credits. the firm credit are
e3xtended for production (inputs) and development purposes.
Non-firm credits are allowed for livestock (goats, sheep and cattle) ,poultry, factory
including social forestry and fisheries .
RUNNING FINANCE:
it is a short term loan allowed by the bank for a period of one year. The mark up is
recovered on the products of daily outstanding balance. The running finance is
suitable for meeting day to day financial needs of the business.
UNIVERSITY OF SARGODHA.
Page 13
BBA-4th-SS
The account holder can withdraw cash from PLS account only eight times in a
calendar month and for total amount should not exceed Rs. 15000.
FINANCIAL ANALAYSIS
Financial Reports
STATEMENT OF FINANCIAL POSITION
ASSETS
2015
2014
2013
60,789
42,128
45,775
3,628
2,030
12,461
Investments- Gross
546,855
428,791 364,966
Advances Gross
340,769
306,014 285,376
28,850
27,250
22,084
Other assets
32,716
36,055
23,496
(19,164)
(19,811) (18,375)
(2,778)
(807)
991,665
842,269 734,196
LIABILITIES
2015
Bills payable
4,942
137,96
4,832
2013
4,879
66,096 32,952
UNIVERSITY OF SARGODHA.
2014
(1,587)
Page 14
BBA-4th-SS
Sub-ordinated loans
2,994
4,242
Other liabilities
Total Liabilities
PRESENTED BY
2015
2014
2013
Share capital
Share premium
Reserves
Un appropriated profit
Equity Tier I
Total Equity
80,890 66,198
PROFITABILITY
2015
2014
2013
7)
5)
2)
4,409
3,758
3,711
4,360
7,850
4,645
Other income
986
1,128
1,247
UNIVERSITY OF SARGODHA.
Page 15
BBA-4th-SS
9,755
12,736 9,603
Gross income
Operating expenses
3)
0)
4)
Donations
(139)
Taxation
3)
UNIVERSITY OF SARGODHA.
(76)
(80)
(7,187) (118)
Page 16